Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company achieved revenue of 5.464 billion RMB in 1H25, representing a year-over-year increase of 45.21%, with a net profit of 1.201 billion RMB, up 40.78% year-over-year. In 2Q25, revenue reached 3.064 billion RMB, a year-over-year increase of 41.15% and a quarter-over-quarter increase of 27.66% [1][6]. - The company is experiencing rapid growth in its CPU and DCU product lines, with a notable increase in customer recognition and market expansion. However, profit growth is currently lagging behind revenue growth due to declining gross margins and rising sales and R&D expenses [1][2]. - The report highlights the acceleration of domestic high-performance computing chip production, with expectations for continued strong performance in the company's CPU and DCU products [1][4]. Summary by Sections Financial Performance - In 2Q25, the company reported a gross margin of 59.33%, down 4.5 percentage points year-over-year and 1.86 percentage points quarter-over-quarter, primarily due to product mix changes from CPU transitions and increased DCU sales [2]. - R&D expenses in 2Q25 were 0.792 billion RMB, up 42.2% year-over-year, while sales expenses surged by 249.26% year-over-year to 0.138 billion RMB [2][12]. Market Outlook - The company anticipates accelerated growth in DCU revenue in 2H25, supported by new product launches and partnerships with leading internet firms [3]. - A significant asset restructuring is underway, which is expected to enhance the company's competitive position in high-end computing and data center markets [3][4]. Valuation and Price Target - The target price is set at 176.6 RMB, with adjusted profit forecasts for 2025-2027 reflecting a slight decrease due to anticipated changes in gross margin [4][7]. - The report projects net profits of 3.322 billion RMB, 5.587 billion RMB, and 6.468 billion RMB for 2025, 2026, and 2027, respectively [10][19].