Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 293 million yuan for the first half of 2025, a year-on-year decline of 8.81%, and a net profit attributable to shareholders of 21 million yuan, down 47.75% year-on-year. In Q2 2025, revenue was 129 million yuan, a decrease of 10.31%, with a net profit of 1 million yuan, down 79.13% year-on-year. The slowdown in high-speed rail passenger growth has led to a slow recovery in high-speed rail advertising, while point optimization and expansion have negatively impacted profits. However, the company's resource layout is still ongoing, and future performance is expected to improve [2][5][10]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved total revenue of 293 million yuan, a decrease of 8.81% year-on-year, and a net profit of 21 million yuan, down 47.75% year-on-year. For Q2 2025, revenue was 129 million yuan, a decline of 10.31%, with a net profit of 1 million yuan, down 79.13% year-on-year [2][5]. Business Operations - The growth rate of high-speed rail passenger traffic has slowed, impacting high-speed rail advertising revenue, which was 255 million yuan in the first half of 2025, down 9.27% year-on-year. The company has signed agreements with 18 domestic railway bureau groups, establishing a digital media network that reaches over 2 billion passengers annually across 30 provincial-level regions [10]. Strategic Developments - The company is actively expanding its outdoor naked-eye 3D screen business, with installations in major commercial areas such as Guangzhou, Chengdu, and Beijing. In the first half of 2025, revenue from outdoor naked-eye 3D media was 38 million yuan, a decrease of 5.56% year-on-year. The company is also making significant progress in AI digital image processing for its advertising [10]. Profitability Outlook - Due to the upfront costs associated with point optimization and expansion, the company expects net profits of 72 million yuan and 146 million yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 67.84 and 33.66 [10].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 670 million yuan for 2024, representing a year-on-year increase of 12.26%. However, the net profit attributable to the parent company was 76 million yuan, down 43.64% year-on-year. For Q1 2025, the revenue was 164 million yuan, a decrease of 7.60%, with a net profit of 21 million yuan, down 45.72% year-on-year. The decline in profit is primarily attributed to the upfront costs associated with expanding advertising locations, despite stable growth in advertising spending [2][5][11]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 670 million yuan, up 12.26% year-on-year. The net profit attributable to the parent company was 76 million yuan, down 43.64% year-on-year. For Q1 2025, the revenue was 164 million yuan, down 7.60%, with a net profit of 21 million yuan, down 45.72% year-on-year [2][5]. Advertising Growth - High-speed rail passenger numbers continued to grow, leading to a recovery in high-speed rail advertising, which generated 564 million yuan in revenue for 2024, an increase of 4.25% year-on-year. The company has signed agreements with 18 domestic railway bureaus, establishing a digital network that reaches over 2 billion passengers annually across 30 provincial-level regions [11]. Outdoor Advertising Expansion - The company significantly increased its revenue from outdoor naked-eye 3D screens, achieving 107 million yuan in 2024, a year-on-year growth of 88.85%. The company is also focusing on AI content production, with several notable projects completed [11]. Cost Structure - The expansion of advertising locations has led to increased costs, with operating costs rising by 28.25% in 2024 and 3.21% in Q1 2025. The media resource usage cost reached 383 million yuan in 2024, up 29.37% year-on-year [11]. Profitability Outlook - The company anticipates that the upfront costs for new advertising locations will impact profitability in the near term. The expected net profit for 2025 and 2026 is projected to be 72 million yuan and 146 million yuan, respectively, with corresponding price-to-earnings ratios of 54.32 and 26.96 [11].