Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company has shown strong performance in its mining and hydropower businesses, with significant growth in these sectors. The acquisition of Wuxin Heavy Industry marks its entry into the port machinery sector, which is expected to enhance its market position [3][5] - Despite a decline in overall revenue and net profit in the first half of 2025, the company is optimistic about future profitability due to increased investment in R&D and growth in the mining and hydropower markets. The projected net profits for 2025-2027 are 115 million, 141 million, and 175 million respectively, with corresponding EPS of 1.28, 1.57, and 1.95 [3][4] Financial Performance Summary - In H1 2025, total revenue was 384 million, a year-on-year decrease of 5.19%, while net profit attributable to the parent company was 51 million, down 26.87% [3] - The mining sector revenue increased by 182.62% to 45.82 million, and the hydropower sector revenue grew by 72.61% to 31.54 million. The after-market services also saw a revenue increase of 19.57% [4] - The company has been awarded 43 patents in H1 2025, including 9 invention patents and 32 utility model patents, indicating a strong focus on innovation [4] Acquisition and Market Expansion - The company plans to acquire 100% of Wuxin Heavy Industry and Xiongzhong Technology through a combination of cash and stock, with a total transaction value of 2.65 billion. This acquisition is aimed at expanding into the port machinery and road and bridge construction sectors [5] - The acquisition is expected to enhance the company's capabilities in developing and selling intelligent equipment for port logistics, as well as providing specialized equipment and system solutions for transportation infrastructure [5] Financial Projections - The projected financials for the company indicate a recovery in revenue, with estimates of 861 million for 2025, 962 million for 2026, and 1.083 billion for 2027, reflecting a growth rate of 7.8%, 11.7%, and 12.6% respectively [6][9] - The projected net profit for 2025 is 115 million, with a year-on-year growth of 9.9%, and further growth expected in subsequent years [6][10]