Core Insights - Hengyu Xintong Aviation Equipment (Beijing) Co., Ltd. reported a revenue of 84.13 million yuan for the first half of 2025, representing a year-on-year growth of 8.36% [1] - The net profit attributable to shareholders reached 17.75 million yuan, marking a significant increase of 96.47% compared to the previous year [1] - The company plans to distribute a cash dividend of 2.3 yuan for every 10 shares to all shareholders [1] Company Overview - Hengyu Xintong specializes in the research, development, production, and sales of helicopter integrated display control equipment, along with providing related professional technical services [1] - The company is a key provider of integrated system solutions and technical services in the military helicopter integrated display control equipment sector in China [1] - Its main products include airborne multifunction display control equipment and embedded computer modules, with the multifunction display control equipment being the primary product [1]

Core Viewpoint - The embedded computer industry in key domestic sectors is experiencing significant growth, with the company Zhimingda positioned as a leading player, providing customized solutions and products to meet the demands of key national sectors [1][3][4]. Group 1: Company Overview - Zhimingda has over 20 years of experience in the embedded computer industry, ensuring its leading position through core technological advantages [4][5]. - The company has maintained stable and rapid revenue growth, with a compound annual growth rate of 13.85% from 2019 to 2024, and a gross margin exceeding 40% [11][15]. - The company’s main shareholder, Wang Yong and Zhang Yue, collectively hold over 34% of the shares, indicating strong control over the company [6]. Group 2: Industry Demand and Opportunities - The demand for embedded computers in key sectors is vast, driven by the increasing need for intelligent equipment in communications, healthcare, and defense [1][17]. - The global market for embedded systems in key sectors is projected to grow from $101.9 billion in 2020 to $238 billion by 2027, with a compound annual growth rate of 12.9% [23]. - The acceleration of national defense informationization is creating significant opportunities for embedded computers, as they are essential for modern military equipment [24][26]. Group 3: Product Applications - Zhimingda's products are widely used in various key sectors, including airborne and missile systems, with a focus on high reliability and real-time performance [1][40]. - The company has expanded its product offerings to include applications in unmanned aerial vehicles and commercial satellites, which are expected to become new growth points [13][27]. - The embedded computer modules are crucial for airborne systems, providing functionalities such as radar, communication, navigation, and electronic warfare [33][36]. Group 4: Financial Forecast and Investment Rating - The company forecasts net profits of 0.19 million, 1.13 million, and 1.54 million for 2024, 2025, and 2026 respectively, with corresponding earnings per share (EPS) of 0.17, 1.01, and 1.37 [2][11]. - The investment rating is maintained at "Buy," reflecting confidence in the company's recovery and growth potential as the industry rebounds [2][11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 60.00, compared to the last closing price of 39.87 [1]. Core Insights - The company, Zhimin Da (688636), is a leading player in the domestic embedded computer industry, focusing on key national sectors and providing customized solutions, products, and services [4][11]. - The demand for embedded computers in key sectors is expected to grow significantly due to the acceleration of defense information construction and the increasing intelligence of equipment [5][51]. - The company is well-positioned to benefit from the recovery of orders in key sectors, with expectations of improved financial performance in the coming years [5][24]. Summary by Sections 1. Company Overview - Zhimin Da has over 20 years of experience in embedded technology, ensuring its leading position in the industry through core technical advantages [12][13]. - The company has a stable revenue growth rate, with a compound annual growth rate of 13.85% from 2019 to 2024, and a gross margin maintained above 40% [24]. 2. Market Demand - The embedded computer market is experiencing significant growth driven by the demand for intelligent equipment in various industries, including communications and healthcare [4][42]. - The global market for embedded systems in key sectors is projected to grow from USD 101.9 billion in 2020 to USD 238 billion by 2027, with a CAGR of 12.9% [44]. 3. Product Applications - The company’s products are widely used in key sectors, including airborne and missile systems, with a focus on enhancing capabilities in these areas [5][61]. - The company has expanded its product offerings to include applications in satellite and drone markets, which are expected to contribute to future growth [5][28]. 4. Financial Projections - The company’s net profit is projected to be CNY 0.19 million, CNY 1.13 million, and CNY 1.54 million for 2024, 2025, and 2026 respectively, with corresponding EPS of CNY 0.17, CNY 1.01, and CNY 1.37 [5][7]. - The expected PE ratios for the same periods are 233, 40, and 29, indicating a potential for significant valuation improvement as the market recovers [5].