Financial Performance - In 1H25, the company achieved revenue of 8.347 billion yuan, a year-on-year increase of 15.4%, and a net profit attributable to shareholders of 964 million yuan, up 14.2% year-on-year, with a non-recurring net profit of 927 million yuan, increasing by 17.9% [1] - For 2Q25, the company reported revenue of 4.36 billion yuan, a year-on-year increase of 15.5% and a quarter-on-quarter increase of 9.6%, with a net profit attributable to shareholders of 553 million yuan, up 13.2% year-on-year and 34.5% quarter-on-quarter, and a non-recurring net profit of 546 million yuan, increasing by 20.7% year-on-year and 43.5% quarter-on-quarter [1] Growth Trends - In 2Q25, the company's shipment value continued to show strong year-on-year growth, with an estimated overall shipment growth of over 20%, driven primarily by the new energy sector [2] - The new energy segment remains the core driver of growth, with shipments of high-voltage direct current for new energy vehicles and new energy inverters both increasing by over 50% year-on-year, benefiting from strong domestic new energy vehicle sales and recovering European demand [2] - Industrial control and signal relays also showed a recovery, with shipments increasing by over 30% year-on-year in 2Q25, while automotive low-voltage shipments grew by 16-17% year-on-year [2] Modular Business and Product Development - The modular business continued to expand, with significant growth in automotive modules, particularly high-voltage distribution boxes, which saw nearly 200% year-on-year growth in shipments for 1H25 [3] - New products such as film capacitors, connectors, fuses, and current sensors are in the process of customer expansion and market introduction, awaiting further order releases [3] Profitability and Cost Management - In 2Q25, the company's gross margin improved to 34.7%, with a year-on-year increase of 0.03 percentage points and a quarter-on-quarter increase of 0.9 percentage points, benefiting from product structure optimization and increased revenue scale [3] - The company's expense ratio decreased to 15.3% in 2Q25, with year-on-year and quarter-on-quarter changes of -1.3 percentage points and -2.5 percentage points, respectively, primarily due to positive exchange rate effects on financial expenses [3] Earnings Forecast and Valuation - The company maintains its profit forecast for 2025 and 2026 at 1.926 billion yuan and 2.248 billion yuan, respectively, with a target price of 30.0 yuan, corresponding to P/E ratios of 17.9x and 15.3x for 2025 and 2026 [4] - The target price implies an upside potential of 27.1%, maintaining an outperform rating in the industry [4]

Core Insights - The county-level movie box office has shown significant growth, with 18 counties surpassing 30 million yuan in box office revenue in the first half of the year [2][3] - The top three counties in box office revenue are Kunshan, Yiwu, and Jinjiang, with Kunshan leading at 880.97 million yuan [5][6] - The overall movie market in China has experienced its best half-year performance in five years, largely driven by the success of the film "Nezha: Birth of the Demon Child" [3][6] Box Office Performance - In the first half of the year, the box office in Kunshan reached 880.97 million yuan, with "Nezha 2" contributing 453.17 million yuan, accounting for 51.4% of the total [5] - Yiwu's box office reached 69.69 million yuan, ranking second, while Jinjiang's box office was 49.50 million yuan, ranking third [6] - Eight counties exceeded 40 million yuan in box office revenue, with four from Jiangsu and three from Zhejiang [3][6] Economic Context - The growth in county-level box office revenue reflects the rising consumption in county economies, supported by improved infrastructure [2][7] - In 2024, the total retail sales of consumer goods in county and rural areas increased by 5.4%, outpacing urban areas [7] - Some counties have seen per capita consumption expenditures comparable to first-tier cities, with 17 counties reporting urban residents' per capita consumption exceeding 50,000 yuan [7][8] Industry Trends - The expansion of cinema chains and other consumer brands in county markets indicates a growing recognition of the potential in these areas [9] - The county-level economy is diversifying, with significant growth in sectors such as e-commerce and logistics, as evidenced by Yiwu's impressive courier service volume and e-commerce transaction value [6][8]