Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant operational turning point in its main business, with new applications gradually yielding results. The manufacturing demand is expected to recover, and the company is likely to benefit from emerging applications and the trend of laser technology going global [2][6]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. The net profit attributable to the parent company was 73 million yuan, a decrease of 23.78%. The net profit excluding non-recurring items was 32 million yuan, down 38.34%. In Q2 2025, revenue reached 949 million yuan, up 20.73% year-on-year, while the net profit attributable to the parent company was 56 million yuan, up 73.79% [2][6]. Business Development - The company is solidifying its leading position in the market, with a robust recovery in manufacturing demand and a steady expansion into new applications. The international business is also progressing, with overseas revenue growing nearly 40% year-on-year in the first half of 2025. New customer centers in Turkey and Japan have commenced operations, and the company is preparing to establish offices in Germany, Mexico, Thailand, and South Korea [2][11]. New Applications - The company is actively expanding into new application areas, including: 1. Consumer market: Over 10,000 units of consumer-grade laser equipment sold in the first half of 2025, responding to the trend of miniaturization and smart consumer products [11]. 2. Medical field: Introduction of specialized thulium lasers targeting urology, achieving import substitution and passing performance tests [11]. 3. Security field: Development of key technologies for laser security, with significant revenue growth in its subsidiary [11]. Product Innovation - The company has launched new high-power laser products, including a semiconductor laser suitable for various applications such as electric vehicles and 3D printing. The UV nanosecond laser has been well-received in PCB precision processing, showcasing excellent performance [11]. Profit Forecast - The company is expected to achieve net profits of 182 million yuan, 285 million yuan, and 356 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 91x, 58x, and 47x [11].

Core Viewpoint - The laser industry is showing a stable and positive trend in H1 2025, with the company experiencing simultaneous growth in revenue and shipment volume. Q2 revenue increased by 20.73% year-on-year and 32.67% quarter-on-quarter, indicating a performance turning point. Additionally, overseas revenue grew nearly 40% year-on-year, reflecting the company's ongoing international strategy and market expansion in various sectors such as consumer, medical, and security lasers [1][3]. Financial Performance - In H1 2025, the company achieved operating revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. However, net profit attributable to shareholders decreased by 23.78% to 73 million yuan, while the net profit excluding non-recurring items fell by 38.84% to 32 million yuan [2]. - In Q2 2025, the company reported operating revenue of 949 million yuan, a year-on-year increase of 20.73%. Net profit attributable to shareholders rose significantly by 73.79% to 56 million yuan, and net profit excluding non-recurring items surged by 155.28% to 30 million yuan [2][4]. Profitability and Cost Management - The company's gross margin remained relatively stable at 19.00% in H1 2025, down 4.67 percentage points year-on-year. The gross margin for core products, continuous fiber lasers, was 17.20%, also down 4.75 percentage points year-on-year. Adjusting for accounting changes, the gross margin could be around 24%-25%, with expectations for improvement as cost optimization and rebate adjustments take effect [4]. - The company maintained good control over operating expenses, with a total expense ratio of 14.59% in H1 2025, a slight decrease of 0.28 percentage points year-on-year. The breakdown of expenses includes sales at 2.00%, management at 2.87%, R&D at 10.25%, and financial expenses at -0.54% [4]. Market Expansion and New Opportunities - The company is making significant strides in various niche markets, including consumer, medical, and security lasers. In the consumer sector, laser sales exceeded 10,000 units in H1 2025, driven by a strategic focus on miniaturization and smart consumer products [5]. - In the medical field, the company launched a specialized thulium laser targeting urology, achieving import substitution and laying a solid foundation for market promotion [5]. - In the security sector, the company is advancing key technologies for laser security, with a subsidiary reporting over 420% year-on-year revenue growth in H1 2025 [5].

Core Insights - The company reported a revenue of 1.664 billion yuan for the first half of 2025, representing a year-over-year increase of 4.85%, while the net profit attributable to shareholders was 73 million yuan, down 23.78% year-over-year [1] - In Q2 alone, the company achieved a revenue of 949 million yuan, marking a year-over-year increase of 20.73% and a quarter-over-quarter increase of 32.67% [1] Revenue Breakdown - Continuous fiber laser revenue reached 1.363 billion yuan, up 7.93% year-over-year, accounting for 81.88% of total revenue [2] - Pulsed fiber laser revenue was 155 million yuan, down 19.13% year-over-year, making up 9.29% of total revenue [2] - Ultrafast laser revenue was 41 million yuan, up 34.48% year-over-year, contributing 2.47% to total revenue [2] - Overseas revenue grew nearly 40% year-over-year, indicating steady global sales growth [2] New Business Developments - The company is expanding into the consumer market, with over 10,000 units of laser devices sold in the consumer segment in the first half of 2025, responding to the trend of miniaturization and smart consumer products [3] - The company is entering the laser medical field with a specialized thulium laser targeting urology, having achieved import substitution and passed comprehensive performance tests [3] - The company is also advancing in the laser security sector, with a subsidiary showing over 420% year-over-year revenue growth in the first half of 2025 [3] Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of 178 million, 275 million, and 361 million yuan for 2025 to 2027, with corresponding P/E ratios of 103, 67, and 51 [4] - Given its leadership in the domestic fiber laser market and ongoing efforts in exports, precision manufacturing, and specialty fields, the company is expected to see sustained mid-to-high-speed growth in revenue and significant improvement in profitability [4]