Market Trends - The domestic market indices showed mixed performance, with the Shanghai Composite Index closing at 3,639.67, up by 0.16%, while the Shenzhen Component Index fell by 0.18% to 11,157.94 [4] - The coal market has seen a significant shift, with the Qinhuangdao port's 5500 kcal thermal coal closing price rising to 667 RMB/ton, surpassing the annual long-term contract price, indicating a recovery in market confidence [7] Coal Industry Insights - The long-term contract price inversion has been resolved, boosting market confidence and leading to an expectation of rising coal prices. The inversion lasted from February 28, 2025, to August 4, 2025, during which the contract fulfillment rate declined [7] - The expectation for coal prices to rise may exceed previous forecasts, particularly for coking coal, which has shown a faster and greater increase than thermal coal [7] - Coal stocks are responding positively to favorable market conditions, with a focus on policy implementation and supply-demand dynamics. Key stocks to watch include Huayang Co., Jinkong Coal, and Shanxi Coking Coal [7] Non-Banking Financial Sector - The Ministry of Finance has announced the reintroduction of VAT on interest income from newly issued government bonds, which is expected to have a limited impact on the industry. The estimated additional tax burden for the securities industry is 5.304 billion RMB, accounting for only 1.18% of the 2024 revenue [8] Company Performance: Zhongchong Co. - Zhongchong Co. reported a revenue of 2.432 billion RMB for the first half of 2025, reflecting a year-on-year growth of 24.32%, with a net profit of 203 million RMB, up by 42.56% [9] - The company’s domestic business continues to grow robustly, with a focus on expanding its brand internationally [9] Company Performance: Dipu Technology - Dipu Technology achieved a revenue of 551 million RMB in the first half of 2025, marking a 9.59% increase year-on-year, while net profit slightly increased by 0.17% to 52 million RMB [11] - The company is accelerating its layout in AI and computing network businesses, indicating a strategic shift towards high-growth areas [11][17] Investment Recommendations - The coal sector is expected to benefit from rising prices, with specific stocks recommended for investment due to their potential for significant returns [7] - For Zhongchong Co., the growth in domestic and international markets suggests a positive outlook for future performance [9] - Dipu Technology's focus on AI and computing networks positions it well for future growth, with an adjusted earnings forecast indicating a strong potential for profitability [15][17]

Core Viewpoint - Dipu Technology (300768) has shown steady revenue growth in the first half of 2025, with a focus on accelerating its layout in AI and computing network new businesses, leading to a "Buy" rating from Shanxi Securities [1][4]. Financial Performance - In the first half of 2025, the company achieved revenue of 551 million yuan, a year-on-year increase of 9.59%, and a net profit attributable to shareholders of 52 million yuan, a slight increase of 0.17% [1]. - For Q2 2025, revenue reached 272 million yuan, up 9.61% year-on-year, with a net profit of 22 million yuan, reflecting a significant increase of 40.20% [1]. - The company's gross margin decreased by 6.18 percentage points compared to the same period last year, influenced by changes in product and customer structure [2]. Cost Control and Efficiency - The company has effectively reduced costs, with selling, administrative, and R&D expense ratios decreasing by 4.67, 0.21, and 1.57 percentage points, respectively, compared to the previous year [2]. - The net profit margin for the first half of 2025 was 9.47%, only slightly down by 0.89 percentage points year-on-year, indicating effective cost control [2]. Product and Business Development - The company is accelerating its layout in AI and computing network businesses, launching products such as an all-operational intelligent security system with a 96.2% accuracy rate and a data classification intelligent system that improves efficiency by over 10 times [3]. - The domestically produced 400G computing switch features advanced technology and self-control capabilities, supporting various data center characteristics and meeting the needs for domestic computing network infrastructure [3]. Investment Outlook - As a provider of comprehensive network security solutions, the company is expected to enhance its profitability through self-research and promotion of application delivery products [4]. - The earnings per share (EPS) forecast for 2025-2027 is adjusted to 0.31, 1.38, and 0.44 yuan, with corresponding price-to-earnings (PE) ratios of 59.55, 48.98, and 41.76 times based on the closing price of 18.44 yuan on August 6 [4].

Investment Rating - The report maintains a "Buy-A" rating for the company [1][6] Core Insights - The company achieved a revenue of 551 million yuan in the first half of 2025, representing a year-on-year growth of 9.59%. The net profit attributable to the parent company was 52 million yuan, a slight increase of 0.17% year-on-year [5] - The company is accelerating its layout in AI and computing network new businesses, with significant advancements in product offerings such as a security operation intelligent body and a domestically produced 400G computing switch [6] - The company is expected to improve its profitability through self-research in underlying hardware and the promotion of application delivery products [6] Financial Performance - In the first half of 2025, the company's revenue from network security products was 319 million yuan, a decrease of 12.76% year-on-year, while revenue from application delivery and network products increased by 81.67% to 169 million yuan [5] - The company's operating income for the first half of 2025 was 1.57 billion yuan from telecom operator clients, up 16.75% year-on-year, while government client revenue decreased by 43.19% to 920 million yuan [5] - The gross profit margin decreased by 6.18 percentage points compared to the same period last year, but the net profit margin was 9.47%, only down 0.89 percentage points year-on-year due to effective cost control [5] Earnings Forecast - The earnings per share (EPS) for 2025-2027 are projected to be 0.31, 0.38, and 0.44 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 59.55, 48.98, and 41.76 times based on the closing price of 18.44 yuan on August 6 [6][8]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company is expected to achieve stable revenue growth with a projected operating revenue of 1.155 billion yuan in 2024, representing an increase of 11.68%. The net profit attributable to the parent company is forecasted to be 161 million yuan, up 27.26% [1][8]. - The company has launched an employee stock ownership plan, indicating confidence in its growth potential across various industries, particularly in telecommunications and energy sectors [3][4]. - The company is experiencing a gradual recovery in profit margins, with a gross margin of 67.28% expected in 2024, despite a slight decline [2][14]. Revenue and Profitability - The company's revenue for Q4 2024 is projected to be 335 million yuan, reflecting a year-on-year increase of 6.89%. The net profit for the same period is expected to be 69 million yuan, up 15.47% [1][8]. - For Q1 2025, the company anticipates revenue of 279 million yuan, a 9.57% increase, but a decline in net profit by 16.60% to 31 million yuan [1][8]. Financial Performance - The company has shown significant improvement in cash flow, with operating cash flow reaching 328 million yuan, a 160.69% increase [2][17]. - The sales and research expenses as a percentage of revenue have decreased, indicating improved cost management [2][14]. Future Projections - Revenue projections for 2025-2027 are set at 1.302 billion yuan, 1.490 billion yuan, and 1.738 billion yuan, respectively, with net profits expected to be 211 million yuan, 286 million yuan, and 383 million yuan [4][5]. - The company’s price-to-earnings ratio (PE) is projected to decrease from 48 in 2025 to 27 in 2027, suggesting an improving valuation over time [4][5].