Investment Rating - The report maintains an "Accumulate" rating for the company [2]. Core Insights - The company is a leading integrated marketing service provider in China, transitioning towards a diversified technology group with a focus on AI, computing power chips, and sports lottery [3][5]. - The advertising marketing business is expected to benefit from a recovery in demand, with the overall advertising market projected to grow by 10% in 2024 [3][35]. - The company has established strategic partnerships in the computing power sector, enhancing its capabilities in AI and data-driven marketing [3][5]. Summary by Sections 1. Company Overview - The company has over 20 years of experience in the advertising marketing field and has expanded its services from campus media to a wide range of industries [3][8]. - It has built a national marketing service network covering major cities in China and is actively diversifying into AI, computing power, and sports lottery sectors [3][8]. 2. Advertising Marketing Business - The advertising market in China is expected to reach approximately 1.82 trillion yuan in 2024, with a year-on-year growth of 10% [3][35]. - The company has a resilient business model supported by its "product + channel + customer group" strategy, positioning it to benefit from the recovery in the advertising sector [3][29]. 3. Computing Power Services - The company has formed strategic partnerships with leading chip distributors, integrating computing power, data, and marketing services [3][5]. - The demand for intelligent computing power is projected to grow significantly, with the market expected to reach 2,781.9 EFLOPS by 2028 [3]. 4. Sports Lottery Business - The sports lottery sector is anticipated to grow, driven by increased participation in sports and major events like the World Cup [5]. - The company has established over 30 lottery image stores and signed nearly 1,000 cinema partnerships, positioning itself well in this emerging market [5]. 5. Financial Forecast and Investment Recommendations - The company is projected to generate revenues of 3.69 billion yuan in 2025, with a slight adjustment in profit forecasts due to current advertising demand challenges [4][5]. - The earnings per share (EPS) for 2025 is estimated at 1.68 yuan, corresponding to a price-to-earnings (P/E) ratio of 18 times [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 1.657 billion yuan for the first half of 2025, a year-on-year decline of 13.36%, while the net profit attributable to shareholders was 144 million yuan, an increase of 10.83% [2][5]. - In Q2 2025, the company achieved a revenue of 840 million yuan, down 13.93% year-on-year, with a net profit of 71 million yuan, a decrease of 13.15% [5]. - The company is focusing on its advertising business while actively expanding new business areas, with the lottery business expected to see significant breakthroughs [2][5]. Summary by Sections Financial Performance - For H1 2025, the company achieved a net profit of 144 million yuan, up 10.83% year-on-year, and a non-recurring net profit of 127 million yuan, up 4.56% [5]. - In Q2 2025, the gross margin improved, with a year-on-year increase of 1.47 percentage points and a quarter-on-quarter increase of 6.99 percentage points, reaching 22.06% [10]. Business Development - The company is actively expanding its marketing services for leading clients across various industries, including a new marketing project for the AITO brand in the automotive sector [10]. - The lottery business is being developed with over 30 stores launched in various provinces and nearly 1,000 cinema channel stores signed [10]. - A strategic cooperation agreement was signed with a well-known chip application design and distribution service provider to enhance investment strategies and resource sharing [10]. Future Outlook - The company expects to achieve net profits of 330 million yuan and 505 million yuan for 2025 and 2026, respectively, corresponding to PE ratios of 21.95 and 14.33 [10].