Investment Rating - The report maintains a "Buy" rating for the company with a target price of 47.73 RMB [7][8]. Core Insights - The company has shown continuous improvement in performance, with H1 2025 revenue reaching 460 million RMB, a year-over-year increase of 33.40%, and a net profit of 80.98 million RMB, up 21.50% year-over-year [1]. - The aerospace manufacturing business has seen a significant recovery, with revenue from aviation-related equipment manufacturing increasing by 58.31% year-over-year, although the gross margin has declined due to a higher proportion of lower-margin landing gear products [2]. - The military products segment continues to grow, with landing gear becoming a pillar of the business, supported by increased demand for military aircraft components [3]. - The civil aviation business has substantial growth potential, with plans to enter international markets and enhance production capabilities through certifications and partnerships with global aviation giants [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 460 million RMB, with a net profit of 80.98 million RMB, reflecting strong growth in both military and civil aviation sectors [1]. - The gross margin for the aviation equipment manufacturing segment was 40.42%, down 19.37 percentage points year-over-year, primarily due to changes in product mix [2]. Business Segments - The military segment has seen robust demand, with successful deliveries of landing gear and wheel products for various military aircraft models [3]. - The civil aviation segment is expanding, with ongoing certification processes for multiple aircraft brake systems and plans for international collaborations [4]. Profitability and Valuation - The report adjusts the company's net profit forecasts for 2025-2027 downwards by 13.66%, 8.64%, and 7.04% respectively, due to the increasing share of lower-margin landing gear business [5]. - The company is assigned a PE valuation of 73 times for 2025, with an updated target price of 47.73 RMB, reflecting its strengthened position in the aircraft landing systems market [5].