Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][7]. Core Views - The company has shown steady growth in its aerospace new materials business, benefiting from the booming composite materials market. The military aviation market's demand for composite materials remains stable, while the civil aviation market presents new opportunities, particularly in the low-altitude economy and other sectors like new energy [6]. - The company reported a revenue of 2.747 billion yuan for the first half of 2025, a year-on-year increase of 7.87%, and a net profit attributable to shareholders of 605 million yuan, up 0.24% year-on-year [4][5]. Financial Performance - In the first half of 2025, the aerospace new materials business achieved a revenue of 2.717 billion yuan, a year-on-year growth of 7.89%, with a net profit of 644 million yuan, up 1.75% [5]. - The company's gross margin improved by 0.54 percentage points to 37.79% in the first half of 2025 [5]. - The company’s total liabilities reached 2.665 billion yuan, a year-on-year increase of 1.73%, while cash and cash equivalents rose by 10.57% to 1.936 billion yuan [4]. Future Projections - The company is expected to have EPS of 0.96, 1.12, and 1.32 for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 27.1, 23.2, and 19.7 based on the closing price of 25.95 yuan on August 22 [7][12]. - Revenue projections for the years 2025 to 2027 are 5.891 billion yuan, 6.901 billion yuan, and 8.152 billion yuan, reflecting year-on-year growth rates of 16.1%, 17.1%, and 18.1% respectively [9][13]. Market Position - The company is recognized as the only professional entity in China engaged in the research and engineering of composite materials in the aviation sector, positioning it as a leader in R&D and results transformation within the domestic market [6]. - The company plans to expand its market presence in civil aviation and the low-altitude economy while consolidating its leadership in military products [6].