Core Insights - The company reported a revenue of 1.673 billion yuan for the first half of 2025, representing a year-on-year growth of 7.03%, and a net profit attributable to shareholders of 63 million yuan, up 18.68% year-on-year [1] - In Q2, the company achieved a revenue of 991 million yuan, with a year-on-year increase of 0.7%, and a net profit attributable to shareholders of 39 million yuan, reflecting a growth of 20.86% year-on-year [2] Operational Analysis - The recovery in infrastructure projects has significantly boosted the company's production and sales volumes, leveraging its long-cycle experience in infrastructure projects and maintaining a leading position in product layout and technology [3] - The company has intensified efforts in major projects in the western region, expanding in hydropower, nuclear power, and railways, with participation in significant projects such as the Sichuan-Tibet Railway and the Yangtze River Tunnel [3] - Sales of the company's third-generation water-reducing agents and functional materials increased by 2% and 31% year-on-year, respectively, marking a continuous recovery over two consecutive quarters [3] - The company has improved its equipment utilization efficiency and slightly reduced raw material costs, leading to a modest increase in profitability [4] Financial Performance - In Q2, the price of the main raw material, ethylene oxide, saw a slight decrease, while the prices of high-performance water-reducing agents remained relatively stable, contributing to a gross margin of approximately 35.51%, an increase of nearly 2 percentage points from Q1 [4] - The company slightly increased its sales expenses in Q2 and revised its 2025 profit forecast down by 19%, projecting revenues of 3.625 billion, 4.014 billion, and 4.378 billion yuan for 2025-2027, with net profits of 154 million, 200 million, and 262 million yuan respectively [5] - The current stock price corresponds to a PE valuation of 31, 24, and 18 times for the years 2025, 2026, and 2027, respectively, maintaining a "buy" rating [5]