Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance meets expectations, with a diversified layout supporting long-term growth [4] - The company reported a revenue of 32.049 billion yuan for H1 2025, a year-on-year increase of 20.42%, and a net profit attributable to shareholders of 1.613 billion yuan, a slight increase of 0.24% year-on-year [4] - The company has a robust order backlog of approximately 20 billion yuan in the energy interconnection sector, indicating strong future revenue potential [6] - The company is actively advancing the research and development of high-end products such as hollow-core fibers and is positioning itself in the computing power industry [5] Financial Summary - For 2025, the company is projected to achieve a revenue of 65.789 billion yuan, with a year-on-year growth of 9.7% [7] - The net profit attributable to shareholders is expected to reach 3.313 billion yuan in 2025, reflecting a year-on-year increase of 19.7% [7] - The company's gross margin is projected to be 13.1% for 2025, with a net margin of 5.0% [7] - The price-to-earnings (P/E) ratio is forecasted to be 15.2 for 2025, decreasing to 12.5 by 2027 [7]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][17]. Core Viewpoints - The company is accelerating the expansion of hollow-core fiber production, driven by dual engines of energy and communication, which supports its long-term development [1]. - The company has a robust order backlog, particularly in the fields of 5G, IoT, and large models, with significant growth in marine energy and communication projects [3]. - The financial outlook is positive, with projected revenue growth and increasing net profit over the next few years, supported by ongoing investments in AI and new infrastructure [8]. Financial Summary - Revenue is projected to grow from 47,622 million yuan in 2023 to 81,827 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 9.1% [1]. - Net profit attributable to shareholders is expected to rise from 2,154 million yuan in 2023 to 4,283 million yuan in 2027, reflecting a CAGR of about 12.7% [1]. - The company's return on equity (ROE) is forecasted to improve from 7.9% in 2023 to 10.8% in 2027 [1]. Operational Highlights - The company has successfully established a complete optical communication industry chain, enhancing its competitive position in the market [2]. - Significant investments are being made in high-voltage transmission equipment and offshore wind power technologies, which are expected to drive future growth [2]. - The company has initiated the construction of a 200-acre AI advanced fiber material R&D and manufacturing center, set to be completed by February 2026, which will enhance its delivery capabilities [3].