Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 15.2 yuan [2][9]. Core Views - The company's performance is under pressure due to the impact of the real estate market, but there are expectations for operational improvement in the future [2][9]. - In Q3 2025, the company achieved a revenue of 430 million yuan, a year-on-year increase of 0.4%, while the net profit attributable to the parent company was 50 million yuan, a year-on-year decrease of 18.6% [2][9]. - The gross margin for Q3 2025 was 43.1%, down 0.6 percentage points year-on-year, attributed to a focus on a "functional and affordable" pricing strategy amid a challenging industry environment [9]. - The increase in marketing expenses has led to a short-term pressure on profitability, with the net profit margin decreasing to 12.0%, down 2.8 percentage points year-on-year [9]. Financial Summary - Total revenue projections for the company are as follows: 1,866 million yuan in 2024, 1,888 million yuan in 2025, 1,986 million yuan in 2026, and 2,111 million yuan in 2027, with corresponding growth rates of -6.5%, 1.2%, 5.2%, and 6.3% respectively [5][10]. - The net profit attributable to the parent company is projected to be 297 million yuan in 2024, 280 million yuan in 2025, 306 million yuan in 2026, and 341 million yuan in 2027, with growth rates of -3.9%, -6.0%, 9.5%, and 11.4% respectively [5][10]. - The company’s price-to-earnings (P/E) ratio is expected to be 15 in 2024, 16 in 2025, 14 in 2026, and 13 in 2027 [5][10].

Core Viewpoint - Aopu Technology's H1 2025 financial results show a decline in revenue but an increase in net profit, indicating mixed performance influenced by the real estate market [1][2]. Financial Performance - In H1 2025, Aopu Technology achieved revenue of 820 million yuan, a year-over-year decrease of 4.9% [1]. - The net profit attributable to shareholders for H1 2025 was 130 million yuan, reflecting a year-over-year increase of 7.8% [1]. - For Q2 2025, the company reported revenue of 470 million yuan, down 1.5% year-over-year, and a net profit of 80 million yuan, up 15.4% year-over-year [1]. Business Segment Analysis - The electrical appliances segment generated revenue of 670 million yuan in H1 2025, a year-over-year increase of 0.9% [1]. - The materials segment saw revenue decline to 140 million yuan, a year-over-year drop of 21.3%, primarily due to low demand in the real estate sector [1]. Profitability and Cost Management - Aopu Technology's gross margin for H1 2025 was 44.5%, a decrease of 1.5 percentage points year-over-year [2]. - The gross margins for the electrical appliances and materials segments were 50.5% and 16.8%, respectively, with year-over-year declines of 2.7 percentage points and 5.1 percentage points [2]. - The net profit margin for Q2 2025 reached 17.3%, an increase of 2.5 percentage points year-over-year, attributed to a reduction in expense ratios [2]. Expense Management - The company successfully reduced its expense ratio by 4.6 percentage points year-over-year, with significant reductions in advertising expenses, which fell by 38.2% [2]. Future Outlook - Aopu Technology's projected net profits for 2025-2027 are 310 million, 330 million, and 360 million yuan, corresponding to price-to-earnings ratios of 16, 14, and 13 times, respectively [3]. - The target price for the company is set at 16.1 yuan, maintaining a "recommended" rating [3].