Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but anticipates growth in the second half due to a strong order backlog and increased production capacity [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 279 million yuan, a year-on-year decrease of 24.33%, and a net profit of 113 million yuan, down 46.47% [1][2]. - The second quarter of 2025 saw a recovery in product delivery, with revenue reaching 213 million yuan, showing a quarter-on-quarter increase of 225.98% [3]. - The sales revenue from stealth structural components grew significantly, reaching 199 million yuan, accounting for 71.46% of total sales [3]. Research and Development - The company increased R&D investment, with H1 2025 R&D expenses amounting to 71 million yuan, an increase of 88.78% year-on-year, representing 25.47% of H1 revenue [2][4]. - Key R&D projects include new stealth structural components and next-generation electromagnetic measurement and control technologies [2]. Profitability - The gross profit margin for H1 2025 was 73.80%, a decrease of 4.49 percentage points, while the net profit margin was 40.63%, down 16.80 percentage points [4]. - The company's expense ratios included a period expense ratio of 36.92%, with R&D expenses constituting 25.47% of revenue [4]. Incentives and Growth Strategy - The company announced a stock incentive plan to grant 1.48375 million restricted shares, aimed at attracting and retaining talent, which is crucial for future performance [5]. - The company is advancing its fundraising projects, including the construction of a manufacturing base for electromagnetic functional materials, with a total planned investment of 618 million yuan [6]. Future Outlook - The company is transitioning into a comprehensive development phase, with projected net profits of 622 million yuan, 823 million yuan, and 1.059 billion yuan for 2025-2027, corresponding to EPS of 1.56, 2.06, and 2.65 yuan [6].

Core Viewpoint - The report highlights the steady development of the company, Jiachitech (688708), in the EMMS (Electromagnetic Functional Materials and Structures) sector, emphasizing its dual focus on military and civilian applications, and the importance of stealth technology in modern weaponry [1][7]. Financial Performance - In 2024, the company achieved a revenue of 957 million yuan, a decrease of 2.45%, and a net profit attributable to shareholders of 517 million yuan, down 8.23% [2][3]. - The gross margin was 76.84%, with a slight decrease of 0.07 percentage points, while the net margin fell to 54.06%, down 3.41 percentage points [3]. - In Q4 2024, revenue surged to 368 million yuan, an increase of 34.98%, and net profit rose to 197 million yuan, up 11.71% [3]. Product Development and Market Position - The company is a leading provider of EMMS in China, focusing on stealth technology and electromagnetic compatibility materials, with products primarily used in the aviation sector [2][5]. - New product developments include next-generation stealth structural components and key absorbing materials, which have shown significant advantages in low-frequency performance and operational costs [2][5]. - The company is expanding its market presence in civilian sectors, including consumer electronics and automotive electronics, to enhance its business layout [2][8]. Research and Development - The company has a strong emphasis on R&D, with a research expense ratio of 9.15%, reflecting ongoing investment in innovation [4][5]. - The proportion of R&D personnel increased to 33.18%, indicating a commitment to enhancing technical capabilities [5]. Capital and Investment - The company raised approximately 1 billion yuan through its IPO, which will be used for expanding production capacity and enhancing R&D capabilities [6]. - The construction of a manufacturing base and R&D center is expected to improve the company's core competencies in the EMMS field [6]. Industry Trends - Stealth technology is becoming a critical capability in modern weaponry, driving demand for stealth materials across various military applications, including new-generation aircraft and missiles [7]. - The increasing need for electromagnetic compatibility materials in consumer electronics and automotive sectors is anticipated to boost demand for the company's products [8]. Future Projections - Revenue forecasts for 2025-2027 are projected at 1.149 billion yuan, 1.373 billion yuan, and 1.632 billion yuan, with net profits of 619 million yuan, 736 million yuan, and 865 million yuan respectively [8].