Group 1: Business Performance - The company is a leading player in the domestic color sorting machine industry, maintaining strong core competitiveness through continuous innovation, market expansion, and brand recognition, resulting in stable growth in its color sorting machine business [2] - The revenue from industrial inspection equipment has declined due to a strategic focus on core businesses and adjustments in product categories and market sales strategies [4] Group 2: Market Outlook - The dental industry is currently experiencing a downturn due to intense market competition and reduced effective demand, but the company remains optimistic about future growth driven by economic development, population aging, and increased public awareness of oral health [3] - The color sorting machine business is expected to continue its stable growth, particularly in the agricultural and recycling sectors, supported by increasing market demand [5] Group 3: Product Innovations - The newly launched AI-powered color sorting machine "Meiya Master 4.0" integrates advanced AI models and real-time monitoring capabilities, quickly gaining popularity in the market [6][7] - The "Meiya Meiya" digital cloud platform for oral health has been optimized and is currently serving over 10,000 users, contributing to the high-quality development of the dental industry [7] Group 4: Inventory and Sales Strategy - As of June, the company's inventory reached 375 million CNY, a 32% increase from the beginning of the year, primarily due to proactive stocking in anticipation of higher sales volumes in the second half of the year [7]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company reported a revenue of 1.023 billion yuan for the first half of 2025, representing a year-on-year growth of 9.92%. The net profit attributable to the parent company was 303 million yuan, up 11.34% year-on-year [1][6] - The color sorting machine business accounted for over 70% of total revenue, with a significant increase in gross margin [1] - The company launched the new AI+ intelligent color sorting machine "Meiya Master 4.0," enhancing its market competitiveness [1] - The medical equipment segment stabilized with a revenue of 204 million yuan, maintaining a gross margin of 48.45% [1][5] Financial Performance - The company achieved a net cash flow from operating activities of 393 million yuan, a year-on-year increase of 125.28% [1] - The overall gross margin for the first half of 2025 was 52.14%, an increase of 1.26 percentage points year-on-year [1] - The color sorting machine segment's revenue was 742 million yuan, with a gross margin of 51.87%, up 2.84 percentage points year-on-year [1] - The projected net profits for 2025-2027 are 730 million, 805 million, and 867 million yuan respectively, with corresponding EPS of 0.83, 0.91, and 0.98 yuan per share [6][9] Market Position - The company has established a leading position in the color sorting machine market through continuous innovation and product iteration [1] - The "Meiya Meiya" digital cloud platform for oral health has surpassed 10,000 end users, laying a solid foundation for future growth in the medical business [5]