Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 143.60, up from the previous RMB 132.00, reflecting an increase in the comparable company's forecasted PE ratio [6][5]. Core Views - The company reported a year-on-year revenue growth of 3.94% for H1 2025, reaching RMB 1.067 billion, with a net profit of RMB 335 million, up 8.82% year-on-year. Q2 revenue showed a significant increase of 9.32% year-on-year and 21.52% quarter-on-quarter, indicating a positive trend in the company's performance [1][2]. - The domestic market demand is recovering, with high-end products such as C-arms and dynamic detectors performing exceptionally well. New core components and solutions have seen over 50% growth year-on-year [2][3]. - The company’s gross margin for H1 2025 was 52.97%, with a net margin of 30.47%. The slight decline in gross margin is attributed to increased depreciation from fixed asset growth, while the net margin improved due to reduced fair value losses [3][4]. Summary by Sections Financial Performance - H1 2025 revenue was RMB 1.067 billion, with a net profit of RMB 335 million. Q2 revenue was RMB 585 million, with a net profit of RMB 191 million, showing strong growth compared to Q1 [1][2]. - The company’s gross margin was 52.97%, and net margin was 30.47%, with stable expense ratios across various categories [3]. Product Development and Market Expansion - The company is investing RMB 18 billion in the silicon-based OLED microdisplay backplane production project, aiming to increase capacity to 5,000 units per month. The CT tube team has extensive experience and is set to begin small-scale production in September 2025 [4][5]. - High-end products such as C-arms and dynamic detectors have shown strong performance, with significant sales growth in new core components and solutions [2][3]. Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are RMB 590 million, RMB 850 million, and RMB 1.1 billion, respectively, with corresponding PE ratios of 37, 25, and 20 times. The target price has been adjusted to RMB 143.60 based on the updated PE valuation [5][6].