Investment Rating - The report maintains a "Strong Buy" rating for the company [2] Core Views - The company experienced short-term pressure on performance, with a revenue of 1.361 billion yuan (down 9.87% year-on-year) and a net profit attributable to the parent company of 280 million yuan (down 9.92% year-on-year) [1][5] - The company is expected to achieve revenue of 2.99 to 3.22 billion yuan in 2025, representing a year-on-year growth of 2% to 10%, and a net profit of 590 to 640 million yuan, also reflecting a year-on-year growth of 2% to 10% [5][6] - The acquisition of Zhenjiang Titanium Alloy Company aims to enhance the company's titanium alloy precision casting capabilities and improve production capacity [5][6] Financial Performance - The company reported a revenue of 1.361 billion yuan for the first half of 2025, with a net profit of 280 million yuan [1] - The second quarter revenue was 708 million yuan (down 14.83% year-on-year, up 8.40% quarter-on-quarter) with a net profit of 146 million yuan (down 10.71% year-on-year, up 8.02% quarter-on-quarter) [5] - The gross profit margin improved to 31.30%, an increase of 1.86 percentage points year-on-year [5] Business Segments - The revenue from the aviation finished parts business was 633 million yuan (down 13.19% year-on-year) with a gross margin of 28.23% (down 9.74 percentage points) [5] - The basic materials business generated 607 million yuan (up 6.22% year-on-year) with a gross margin of 34.39% (up 10.75 percentage points) [5] - The processing services segment saw a revenue increase of 47.83% year-on-year to 53.87 million yuan, with a gross margin of 41.38% (up 28.82 percentage points) [5] Future Outlook - The company forecasts a net profit of 609 million yuan for 2025, with a price-to-earnings ratio of 42.8 [8][16] - The expected revenue growth rates for the next few years are 5% for 2025 and 14% for 2026 and 2027 [8][16] - The company is focusing on enhancing its production capabilities through strategic acquisitions and investments in equipment [5][6]