Core Viewpoint - The company maintains a "Buy" rating for Yangjie Technology, with a target price of RMB 60.9, indicating a potential upside of 16.4% [1] Group 1: Financial Performance - Yangjie Technology's net profit for the first half of 2025 is expected to grow by 30%-50%, with a median net profit of RMB 320 million for Q2, reflecting a year-on-year increase of 32% and a quarter-on-quarter increase of 18% [1] - The company's gross margin remains stable and at a high level, supporting optimism for its mid-term revenue target of RMB 10 billion [1] - The forward P/E ratio is currently at 20.5x, down from a peak of 26.6x at the end of last year, making the valuation attractive [1] Group 2: Business Growth Drivers - The automotive electronics segment is projected to see a strong growth of approximately 60% year-on-year in Q2, driven by demand from overseas Tier 1 suppliers and emerging domestic car manufacturers [2] - The company has the capability to provide products with a unit value of USD 200 per vehicle, with a compound annual growth rate (CAGR) expected to reach 40%-50% over the next three years, potentially accounting for 20% of mid-term revenue [2] - The company is actively expanding its overseas presence, which is crucial for enhancing profitability, as overseas clients are looking to reduce costs and are willing to switch to Yangjie’s products [2] Group 3: Strategic Initiatives - Yangjie Technology is expanding its overseas R&D centers and testing capacities in Vietnam to better serve international clients, indicating a long-term growth potential in overseas markets [2] - The sub-brand MCC has established overseas channels and has seen significant revenue and profit growth over the past decade, further supporting the company's international strategy [2]