Investment Rating - The report maintains a "Buy" rating for the company, with expected revenue growth and profit margins improving over the next few years [5]. Core Insights - The company reported a revenue of 1.856 billion RMB in Q1 2025, a year-on-year decrease of 12.59%, and a net profit of 118 million RMB, down 37.30% year-on-year [2]. - The decline in revenue is attributed to the divestiture of the wireless automotive business, but excluding this impact, the company’s revenue is expected to show growth [3]. - The company is focusing on growth in the automotive and Fixed Wireless Access (FWA) sectors, driven by new customer acquisitions and increased 5G penetration in overseas markets [3]. - The establishment of an AI research institute and a robotics product line indicates a strategic shift towards AI and robotics, which are anticipated to become significant growth drivers for the company [4]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 17%, a decrease of 4.51 percentage points year-on-year but an increase of 2.04 percentage points quarter-on-quarter [3]. - The net profit margin improved to 6.5%, reflecting a 5.5 percentage point increase from the previous quarter [3]. - Revenue projections for 2025-2027 are estimated at 8.598 billion, 10.742 billion, and 13.367 billion RMB respectively, with net profits of 646 million, 796 million, and 1.019 billion RMB [5]. Business Strategy - The company is enhancing its operational efficiency, with a 34.65% reduction in sales expenses and a 93.57% decrease in financial expenses due to reduced foreign exchange losses [3]. - The AI and robotics initiatives are expected to create a second growth curve, contributing positively to the company's performance in the coming years [4].