Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index within the next 12 months [7]. Core Insights - The company reported a significant revenue increase of 145.16% year-over-year for the first three quarters of 2025, reaching 512 million yuan, with a net profit of 82 million yuan compared to a loss of 9 million yuan in the same period last year [1]. - In Q3 2025 alone, the company achieved a revenue of 217 million yuan, marking a year-over-year increase of 340.71% and a net profit of 44 million yuan, reversing the previous year's loss [2]. - The company has seen a substantial increase in customer demand, with a backlog of orders amounting to 450 million yuan by the end of Q3 2025, driven by growth in airborne and missile-borne product orders [4]. - The company is expanding its projects in commercial aerospace, with 152 new research projects initiated in the first three quarters of 2025, maintaining the same level as the previous year but with a notable increase in commercial aerospace projects [4]. - The company is also pursuing a private placement to raise up to 213.4 million yuan for the development and industrialization of unmanned equipment and commercial aerospace embedded computing projects [4]. Financial Summary - For the first three quarters of 2025, the company's gross margin decreased by 1.76 percentage points to 47.98%, while the net profit margin increased by 20.42 percentage points to 16.03% [2]. - The company’s operating expenses have returned to normal levels, with a significant reduction in the expense ratio by 36.20 percentage points to 24.84% [3]. - The forecast for the company's net profit for 2025 to 2027 is projected to be 120 million yuan, 179 million yuan, and 238 million yuan, respectively, with corresponding price-to-earnings ratios of 47x, 31x, and 24x [5][6].

Investment Rating - The report maintains a "Recommended" rating for the company, considering its leading position in the embedded computer module industry and expansion into UAV and AI sectors [4][6]. Core Insights - The company reported significant growth in its 1H25 performance, with revenue reaching 290 million yuan, a year-over-year increase of 84.8%, and a net profit of 38 million yuan, up 2147.9% from the previous year [1]. - The order backlog increased by 74% year-over-year, reaching 608 million yuan by the end of Q2 2025, driven by strong customer demand, particularly in the airborne and AI-related product segments [1][2]. - The company is focusing on enhancing its core competitiveness in various technology directions, including next-generation avionics and AI signal processing, which is expected to contribute to revenue growth in 2025 [2][3]. Financial Performance Summary - In 1H25, the company achieved a gross margin of 48.1%, a decrease of 1.9 percentage points year-over-year, while the net profit margin improved by 11.9 percentage points to 13.0% [1]. - The embedded computer revenue breakdown for 1H25 shows airborne revenue grew by 115.3% to 200 million yuan, while other segments like airborne and unmanned equipment saw declines [2]. - The company’s operating cash flow improved to 30 million yuan in 1H25, compared to a negative cash flow of 2 million yuan in the same period last year [3]. Earnings Forecast - The company is projected to achieve net profits of 120 million yuan, 179 million yuan, and 238 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 49x, 33x, and 25x [4][5].