Investment Rating - The investment rating for Changhong Meiling is "Buy" (maintained) with a current price of 7.67 CNY and a target price not specified for the next 6 months [1]. Core Views - The report highlights that the company has experienced rapid growth in export revenue, although impairment losses have impacted profits. The air conditioning business has been a key driver of revenue growth, supported by deepening ODM collaborations with clients like Xiaomi and expansion into emerging markets [5][6]. - The company reported a revenue of 18.07 billion CNY for the first half of 2025, a year-on-year increase of 20.8%, while the net profit attributable to the parent company was 420 million CNY, up 0.3% year-on-year [5]. - The report anticipates that the company's earnings per share (EPS) will be 0.74 CNY, 0.86 CNY, and 1.00 CNY for the years 2025, 2026, and 2027 respectively, maintaining the "Buy" rating [5][6]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 18.07 billion CNY, with a year-on-year growth of 20.8%. The net profit attributable to the parent company was 420 million CNY, reflecting a slight increase of 0.3% year-on-year. However, the net profit excluding non-recurring items decreased by 9.8% [5]. - For Q2 2025, the company reported a revenue of 10.71 billion CNY, a year-on-year increase of 18.8%, while the net profit attributable to the parent company was 240 million CNY, down 9.7% year-on-year [5]. Business Segments - The air conditioning segment continued to show strong growth, with revenues of 11.58 billion CNY, representing a year-on-year increase of 36.2%. The refrigerator and washing machine segments reported revenues of 4.55 billion CNY and 1.04 billion CNY, with year-on-year changes of -4.2% and +32.7% respectively [5]. - The company’s domestic and international sales achieved revenues of 11.7 billion CNY and 6.36 billion CNY, with year-on-year growth rates of 15.4% and 32.2% respectively [5]. Profitability and Margins - The gross margin for the home appliance business was 10.2%, a decrease of 0.36 percentage points year-on-year, primarily due to changes in product mix and a higher proportion of lower-margin overseas sales [5]. - The report indicates that various expenses and losses, including financial expenses and credit impairment losses, have eroded profits, with significant increases in asset impairment losses [5].