Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a significant increase in performance for the first half of 2025, with operating revenue reaching 6.61 billion yuan, a year-on-year growth of 14.92%, and a net profit attributable to shareholders of 740 million yuan, up 61.19% year-on-year [2][4]. - In Q2 2025, the company achieved revenue of 3.51 billion yuan, representing a year-on-year increase of 43.85% and a quarter-on-quarter increase of 13.35%. The net profit for this quarter was 375 million yuan, showing a remarkable year-on-year growth of 456.29% [2][4]. - The company is benefiting from a recovery in the lithium battery industry, with improved order volumes and cash flow, indicating a positive outlook for sustained growth [9]. Summary by Sections Financial Performance - In H1 2025, the company experienced a recovery in performance with a gross margin of 33.75% and a net margin of 10.82%, both showing significant year-on-year improvements. Operating cash flow reached 2.353 billion yuan, a year-on-year increase of 231.33% [9]. - The lithium battery equipment business generated revenue of 4.545 billion yuan, up 16.40% year-on-year, while the photovoltaic equipment business achieved revenue of 531 million yuan, a year-on-year increase of 32.04% [9]. - The company's international business also grew, with overseas revenue reaching 1.154 billion yuan, a year-on-year increase of 5.42%, and a gross margin of 40.27% [9]. Market Position and Strategy - The company is positioned as a leading provider of solid-state battery equipment, having developed a comprehensive range of solutions and equipment for the production of solid-state batteries. This includes advanced coating and stacking technologies that have received positive feedback from clients [9]. - The company has established deep partnerships with major battery manufacturers and automotive companies in Europe, the US, Japan, and South Korea, leading to repeat orders for its solid-state battery production equipment [9]. Future Outlook - The company is expected to continue benefiting from the recovery in the lithium battery equipment sector, with projected net profits of 1.57 billion yuan and 2.22 billion yuan for 2025 and 2026, respectively, corresponding to price-to-earnings ratios of 35 and 25 times [9].