Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7]. Core Views - The company's revenue for the first half of 2025 was 5.751 billion yuan, a year-on-year decrease of 4.51%, primarily due to product delivery schedules and adjustments in product structure. The net profit attributable to shareholders was 492 million yuan, down 32.59% year-on-year, mainly due to reduced interest income and decreased foreign exchange gains [1][2]. - In Q2 2025, the company saw a significant improvement with revenue of 3.444 billion yuan, up 11.20% year-on-year and 49.34% quarter-on-quarter. The net profit for the same quarter was 294 million yuan, down 27.50% year-on-year but up 48.74% quarter-on-quarter [1]. - The gross margin for the first half of 2025 was 29.27%, a decrease of 1.38 percentage points year-on-year, while the net margin was 10.42%, down 3.50 percentage points year-on-year [1]. Financial Performance - The company reported a period expense ratio of 13.20% for the first half of 2025, an increase of 0.91 percentage points year-on-year. The sales expense ratio increased to 0.86%, management expense ratio to 6.94%, while R&D expense ratio decreased to 4.87% [2]. - As of the end of the first half of 2025, accounts receivable and notes stood at 12.266 billion yuan, an increase of 13.77% from the beginning of the year, and inventory was 5.454 billion yuan, up 9.58% [2]. Order Growth and Market Expansion - The company signed new orders in the first half of 2025, showing a year-on-year increase of 9.39%, with a reserve order growth of 9.26%. The product bidding success rate improved by 10.11% compared to the same period last year [3]. - The company made breakthroughs in the shipbuilding sector, signing market orders worth 78.28 million yuan and developing overseas clients, which may contribute to future revenue growth [3]. Future Outlook - The company expects a significant increase in related procurement amounts for 2025, with sales of products and services projected at 5.5 billion yuan, a 31% increase from 4.2 billion yuan in 2024. The procurement of goods and services is expected to exceed 2.7 billion yuan, more than doubling from 1.2 billion yuan in 2024 [4]. - The report anticipates that the company's core capabilities will continue to strengthen, supporting its expansion into various fields, including commercial engines and marine equipment [4]. Financial Projections - The projected net profit attributable to shareholders for 2025 is 1.013 billion yuan, with estimates of 1.135 billion yuan for 2026 and 1.323 billion yuan for 2027. The corresponding price-to-earnings ratios are 25.27, 22.55, and 19.36, respectively [4][6].