Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - The company reported a revenue of 1.133 billion yuan for the first half of 2025, a year-on-year decline of 28.03%. The net profit attributable to shareholders was a loss of 93 million yuan, an improvement from a loss of 182 million yuan in the same period last year [2][9]. - The company is focusing on integrating AI into its operations, leveraging high-quality security data to enhance its AI models and applications, which has shown significant results in project implementations [9][10]. - The company aims to build a collaborative ecosystem in the cybersecurity sector, aligning closely with China Mobile's operational framework through strategic alliances and technological cooperation [9][10]. Financial Summary - The total revenue forecast for 2025-2027 is projected at 3.237 billion yuan, 3.639 billion yuan, and 4.057 billion yuan, with year-on-year growth rates of -2.4%, +12.4%, and +11.5% respectively [5][10]. - The net profit attributable to shareholders is expected to turn positive in 2025, reaching 135 million yuan, and further increasing to 275 million yuan and 400 million yuan in 2026 and 2027 respectively, with growth rates of 159.6% and 104.1% [5][10]. - The earnings per share (EPS) are projected to be 0.11 yuan, 0.23 yuan, and 0.33 yuan for 2025, 2026, and 2027 respectively [5][10].

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][10]. Core Views - The company's revenue performance for the year is impacted by weak downstream demand, while collaboration with China Mobile continues to deepen [1][5]. - In 2024, the company achieved a revenue of 3.315 billion yuan, a year-on-year decrease of 26.44%, and a net profit attributable to shareholders of -226 million yuan, a year-on-year decrease of 130.53% [4][10]. - The company is focusing on strategic collaboration with China Mobile, enhancing product offerings in AI security, cloud security, and data security, which are expected to drive future growth [6][10]. Financial Performance Summary - In 2024, the company's revenue from security products was 1.905 billion yuan, down 26.12% year-on-year, while revenue from security operations and services was 1.383 billion yuan, down 27.20% year-on-year [5]. - The gross margin for 2024 was 58.77%, an increase of 1.00 percentage points compared to the previous year [5]. - The company’s R&D expenses reached 852 million yuan in 2024, a year-on-year increase of 4.6% [5]. - The net profit margin for 2024 was -6.86%, a decrease of 23.27 percentage points year-on-year [5]. Future Earnings Estimates - The company is projected to have earnings per share (EPS) of 0.25, 0.32, and 0.40 for the years 2025, 2026, and 2027, respectively [10]. - Corresponding price-to-earnings (P/E) ratios for these years are estimated at 61.00, 47.19, and 37.94 [10].