Core Viewpoint - The company reported a mixed performance in H1 2025, with revenue growth but a decline in net profit, indicating challenges in certain segments while showing potential in automotive connectors [1][4]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 2.52 billion yuan, a year-on-year increase of 17.7%, but the net profit attributable to shareholders was 240 million yuan, down 21.1% year-on-year [1]. - Q2 2025 revenue reached 1.33 billion yuan, reflecting a year-on-year growth of 20.3% and a quarter-on-quarter increase of 11.0%, while net profit was 120 million yuan, down 18.1% year-on-year and 3.2% quarter-on-quarter [1]. Group 2: Automotive Sector - The company's automotive connector revenue in H1 2025 was 810 million yuan, up 35.8% year-on-year, driven by the increasing demand for L2+ vehicles, which saw cumulative sales of 2.383 million units in H1 2025, with a penetration rate of 22.5%, up 11.2 percentage points year-on-year [2]. - The gross margin for automotive connectors in H1 2025 was 37.5%, down 3.3 percentage points year-on-year, primarily due to customer structure adjustments and annual declines [2]. - The company anticipates further revenue growth in the automotive sector in H2 2025 as the industry enters a peak season and more intelligent driving models are launched [2]. Group 3: Consumer Electronics Sector - The consumer electronics segment remains the largest revenue contributor, with RF connectors and cable components generating 470 million and 450 million yuan, respectively, in H1 2025, reflecting year-on-year declines of 5.8% and 0.3% due to decreased industry demand [3]. - The domestic smartphone shipment volume in H1 2025 was 140 million units, showing a slight year-on-year decline, with Q2 shipments at 68.96 million units, down 4% year-on-year and quarter-on-quarter [3]. - The gross margins for RF connectors and cable components were 40.2% and 29.1%, down 4.9 and 4.3 percentage points year-on-year, attributed to product mix impacts [3]. Group 4: Operational Challenges and Future Outlook - The overall gross margin for H1 2025 was 29.4%, down 4.4 percentage points year-on-year, with Q2 gross margin at 28.2%, down 4.3 percentage points year-on-year and 2.5 percentage points quarter-on-quarter [4]. - The company’s expense ratio for H1 2025 was 19.0%, down 0.2 percentage points year-on-year, with management expenses increasing significantly due to business expansion and rising operational costs [4]. - The company is optimistic about Q3 2025 as a potential turning point for performance, anticipating improved demand and the gradual production of new capacities [4]. Group 5: Investment Outlook - Based on the company's operational performance in H1 2025, projected revenues for 2025-2027 are 5.6 billion, 7.2 billion, and 8.3 billion yuan, representing year-on-year growth rates of 21%, 28%, and 15% respectively [5]. - Expected net profits for the same period are 710 million, 1.04 billion, and 1.22 billion yuan, with year-on-year growth rates of 14%, 47%, and 18% respectively, indicating a strong CAGR of 25% [5]. - The company maintains a "buy" rating, driven by the anticipated continued growth in the automotive sector due to the acceleration of smart technology [5].

Core Viewpoint - The company reported strong revenue and profit growth for 2024, with a focus on R&D investment and advancements in various business segments, particularly in automotive electronics and AI-related products [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 12.659 billion, a year-on-year increase of 17.68%, and a net profit attributable to shareholders of 1.169 billion, up 24.86% year-on-year [1]. - For Q1 2025, revenue was 3.343 billion, reflecting a year-on-year growth of 21.90%, while net profit was 0.325 billion, up 2.18% year-on-year [1]. - The gross margin for 2024 was 22.73%, a slight decrease of 0.44 percentage points year-on-year, while the net margin improved by 0.70 percentage points to 9.16% [1]. R&D Investment and Business Highlights - The company increased R&D expenditure to 0.758 billion in 2024, a rise of 26.12%, with an R&D expense ratio of 5.98% [2]. - Significant advancements were made in the data center sector, with AI server products achieving mass production and breakthroughs in high-speed PCB products [2]. - In the automotive electronics sector, the company established a strong customer base, achieving a revenue of 5.8 billion, a year-on-year increase of 33%, accounting for 48% of total revenue [2]. Profitability Analysis - Q1 2025 showed steady growth, but profitability faced pressure due to rising raw material costs and increased competition in the automotive electronics sector [3]. - The company is experiencing a high utilization rate, with strong visibility in downstream orders, although price pressures remain in the automotive sector [3]. Future Outlook - The company is expected to make significant progress in the AI computing sector, particularly in high-layer boards and HDI products, with a focus on high-end capacity [4]. - The Zhuhai factory is positioned as a lighthouse factory for high-value products, with a production capacity of 1.2 million square meters for high-layer boards and 300,000 square meters for HDI/SLP products [4]. Long-term Growth Potential - The company's management and strategic focus on high-end automotive and data communication products are expected to unlock new growth opportunities [5]. - The ongoing upgrades in high-end production capacity are anticipated to enhance performance and valuation in the medium to long term [5].