Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Views - The company has turned around its performance with significant revenue growth and profitability, driven by strong demand recovery in downstream sectors [1][7] - The company achieved a revenue of 1.703 billion yuan in the first half of 2025, representing a year-on-year increase of 481.19%, and a net profit of 116 million yuan, up 256.59% year-on-year [1][7] - The company is focusing on enhancing its core position in navigation control while strategically expanding into emerging industries [7] Financial Data and Valuation - Revenue projections for 2025-2027 are estimated at 51.98 billion yuan, 65.35 billion yuan, and 78.32 billion yuan respectively, with corresponding net profits of 305 million yuan, 401 million yuan, and 485 million yuan [8][10] - The company is expected to have a PE ratio of 68.8X in 2025, decreasing to 43.2X by 2027 [8][11] - The company reported a gross margin of 22.32% and a net margin of 6.44% in the first half of 2025, indicating a recovery to normal levels [7] Performance Analysis - The company’s Q2 2025 revenue reached 1.351 billion yuan, a year-on-year increase of 530.2%, marking a significant recovery [7] - The company has shown strong cost control, with financial expenses significantly reduced compared to the previous year [7] - The company’s subsidiaries have also reported stable performance, contributing to overall revenue growth [7] Strategic Positioning - The company is positioned as a key player in the military supply chain, focusing on navigation, guidance, detection, and communication control [7] - The company is actively pursuing quality improvement and efficiency enhancement initiatives, aiming to solidify its long-term growth foundation [7]