Investment Rating - Investment rating: Buy (maintained) [2] Core Views - The company reported a solid performance in Q2 2025, with revenue of 123.29 billion yuan (up 10.90% YoY) and net profit of 13.59 billion yuan (up 15.14% YoY) [6][8] - The air conditioning business is expected to lead growth with a YoY increase of 10%, driven more by domestic sales, while the washing machine and refrigerator business is more reliant on exports [6] - The 2B commercial and industrial solutions business saw a Q2 YoY growth of 17% and a Q1 growth of 25% [6] - The company has implemented a shareholding plan for 2025 and has announced share buybacks totaling over 4.4 billion yuan this year [8][11] Revenue Analysis - The 2C smart home business grew by 9% YoY in Q2 and 17% YoY in Q1 [8] - Domestic sales increased by 14% YoY, while exports rose by 18% YoY in H1 [8] - High-end brands "COLMO + Toshiba" saw retail sales increase by over 60% YoY, while online sales for the Hualing brand grew by 25% YoY [8] Profitability Analysis - Q2 gross margin was 25.8% (down 0.5 percentage points YoY), while net margin was 11.3% (up 0.4 percentage points YoY) [9] - The company has a mid-term dividend payout ratio of 14.6%, with a projected dividend yield of 5.4% for 2025 [11] Financial Forecast - Revenue projections for 2025-2027 are 449.85 billion yuan, 486.83 billion yuan, and 520.02 billion yuan, representing YoY growth of 10.0%, 8.2%, and 6.8% respectively [11] - Net profit forecasts for the same period are 43.37 billion yuan, 47.12 billion yuan, and 50.23 billion yuan, with YoY growth of 12.5%, 8.6%, and 6.6% respectively [11]