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].

Group 1 - The 20th "China Optics Valley" International Optoelectronic Exposition showcased nearly 100 cutting-edge technologies and innovations, linking global innovation resources to accelerate the development of a world-class optoelectronic information industry cluster in Wuhan [1][3] - The theme of this year's expo was "Light Connects Everything, Intelligence Guides the Future," covering an exhibition area of approximately 25,000 square meters, with over 20 conferences and special events across six major application areas [3][4] - The expo has become a significant platform for optoelectronic innovation in China, reflecting the core role of Optics Valley in scientific research, manufacturing, and market application in central and western China [3][4] Group 2 - More than 1,000 innovative achievements were released at the expo, with nearly 100 technologies making their debut, including advanced products in the global optical module field and industrial-grade semiconductor laser technology [4][5] - The expo featured a "Light + Intelligent Terminal Applications" section, showcasing products that demonstrate the integration of optoelectronic technology with artificial intelligence and other emerging fields [5][7] - A total of 20 major investment projects were signed at the opening ceremony, amounting to 19.52 billion yuan, covering various fields such as optical communication, integrated circuits, and artificial intelligence [7][8] Group 3 - By 2024, China Optics Valley has gathered 16,000 enterprises in the optoelectronic information sector, forming the most complete optoelectronic information industry chain globally, with the industry scale exceeding one trillion yuan [8][9] - The local government aims to position China Optics Valley among the top five high-tech zones in China by 2030 and to establish it as a globally influential "World Optics Valley" by 2035 [9]

Core Insights - The 20th "China Optics Valley" International Optoelectronics Expo opened in Wuhan, integrating the "International Light Day" global series of events, attracting 390 renowned companies from 12 countries and regions to showcase nearly 100 cutting-edge technologies in the optoelectronics field [1][2] - The expo resulted in the signing of 20 major investment projects in Hubei, totaling 19.52 billion yuan, covering areas such as optical communication, integrated circuits, compound semiconductors, new displays, and artificial intelligence [1] - Notable product launches included China's first 5 million pixel infrared detector and the world's most advanced 1.6T single-mode optical module, among others [1] Industry Highlights - The expo featured key players in the laser and optics sector, including local leaders like Huagong Technology and Ruike Laser, as well as international giants from France, the USA, and Russia [2] - The optical communication sector showcased major companies such as Huawei and China Information Communication Technologies, highlighting the expanding demand for optical communication in the AI era [2] - The "Light + Intelligent Terminal Applications" section allowed attendees to experience laser radar-enabled autonomous vehicles and robots, demonstrating the practical applications of optoelectronic technology in smart transportation [2] International Engagement - The event attracted 73 foreign guests from countries like Gambia and Malaysia, who expressed a desire to collaborate with Chinese companies, particularly in semiconductor materials [3] - The expo has a history of facilitating international dialogue, with 19 previous events attracting over 6,800 top enterprises from more than 30 countries [3] - This year's event is expected to draw 60,000 professional visitors and host over 20 meetings and special activities across six application areas [3]