Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue of 14.098 billion in H1 2025, a year-on-year decrease of 23.99%, with a net profit attributable to shareholders of 0.092 billion, down 84.57% year-on-year [2][6]. - The second quarter of 2025 saw a revenue of 7.934 billion, a year-on-year decrease of 35.37%, but a quarter-on-quarter increase of 28.69% [2][6]. - The company anticipates a revenue of 33.565 billion in the second half of 2025, representing a year-on-year increase of 14.4%, with a projected net profit of 0.5 billion, up 88.7% year-on-year [6]. Financial Performance Summary - In H1 2025, domestic business revenue was 12.89 billion (down 24.9% year-on-year), while foreign trade subcontracting revenue was 0.87 billion (down 13.5% year-on-year) [6]. - The company’s gross profit margin for H1 2025 was 10.96%, a decrease of 0.31 percentage points year-on-year, while the net profit margin was 1.07%, down 2.48 percentage points year-on-year [6]. - As of the end of H1 2025, the company had a contract liability balance of 6.254 billion, an increase of 39.42% compared to the beginning of the period [6]. Business Development Insights - The company is focusing on a development strategy that includes both military and civilian aircraft engines, with an increase in the proportion of new aircraft models in mass production [6]. - The company successfully developed a civil small and medium-sized aircraft engine brand, with the AES100 engine receiving production certification from the Civil Aviation Administration [6].