Core Viewpoint - Haige Communication reported a revenue of 2.229 billion yuan in H1 2025, a decrease of 13.97%, and a net profit attributable to shareholders of 0.03 billion yuan, down 98.72%, aligning with the performance forecast from July [1] Group 1: Financial Performance - The company's revenue for H1 2025 was 2.229 billion yuan, reflecting a decline of 13.97% [1] - The net profit attributable to shareholders was 0.03 billion yuan, showing a significant drop of 98.72% [1] - The performance results were in line with market expectations, indicating stability despite the downturn [1] Group 2: Business Development - Traditional wireless communication business experienced a temporary decline in orders, but future growth trends are expected to improve with new product launches [1] - The company is actively seeking new business growth points and increasing investments in strategic emerging industries [1] - In the drone sector, the subsidiary Xi'an Chida is developing the "Jiutian" heavy drone, which has a maximum takeoff weight of 16 tons and a payload capacity of 6 tons, addressing a market gap for flexible heavy drones in China [1] Group 3: Future Outlook - The company is expected to gradually generate revenue from emerging industries as it continues to enhance research and development and expand its business boundaries [1] - The long-term growth potential of the comprehensive leader in the industry is viewed positively, with a focus on military-civil integration [1] - Considering the rapid recovery of the company's profitability, a target price of 15.60 yuan is set, maintaining a "buy" rating based on a comparable company PE of 60 times for 2026 [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.60 CNY [4] Core Views - The company reported a revenue of 2.229 billion CNY for H1 2025, a decrease of 13.97% year-on-year, and a net profit attributable to shareholders of 0.03 billion CNY, down 98.72% [1] - The wireless communication business experienced a revenue decline of 5.73% in H1 2025, but new product launches are expected to drive future growth [8] - The company is actively seeking growth opportunities by increasing investments in strategic emerging industries, including military applications of AI technology and satellite internet [8] Financial Performance Summary - Revenue projections for 2025E are adjusted to 6.280 billion CNY, with a forecasted growth of 27.7% in 2026E and 8.9% in 2027E [3] - The net profit attributable to shareholders is expected to recover significantly to 0.333 billion CNY in 2025E, with a projected growth of 526.4% in 2026E [3] - The company's earnings per share (EPS) is forecasted to be 0.13 CNY in 2025E, increasing to 0.30 CNY by 2027E [2][3]