Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Insights - The company's revenue for the first half of 2025 was 488 million yuan, a decrease of 23.19% year-on-year, while the net profit attributable to the parent company was 18 million yuan, down 75.16% year-on-year [1]. - The network visualization business saw significant growth, achieving revenue of 262 million yuan, a year-on-year increase of 43.48%, driven by the gradual implementation of projects in the operator market [2]. - The intelligent system platform business faced challenges, with revenue of 226 million yuan, a decline of 49.95% year-on-year, primarily due to a decrease in orders [3]. - The company is focusing on domestic product integration and enhancing its competitive edge in vertical industries, with plans to increase investment in core technology development for domestic chip adaptation and algorithm optimization [3]. Financial Summary - The company forecasts revenues of 1.36 billion yuan, 1.65 billion yuan, and 2.01 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 120 million yuan, 160 million yuan, and 204 million yuan for the same years [4][5]. - The projected P/E ratios for 2025, 2026, and 2027 are 83.98, 63.35, and 49.56 respectively, indicating a positive outlook for the company's visualization business and potential recovery in the intelligent computing sector [4].

Core Viewpoint - The report highlights the financial performance and operational status of Hengwei Technology (Shanghai) Co., Ltd. for the first half of 2025, indicating a significant decline in revenue and profit compared to the same period last year, while emphasizing the company's strategic focus on network visualization and intelligent systems. Financial Performance - The total revenue for the first half of 2025 was approximately CNY 488.40 million, representing a decrease of 23.19% compared to CNY 635.89 million in the same period last year [3] - The total profit for the period was CNY 17.06 million, down 77.11% from CNY 74.55 million year-on-year [3] - The net profit attributable to shareholders was CNY 17.82 million, a decline of 75.16% from CNY 71.74 million in the previous year [3] - The basic earnings per share decreased by 75.41% to CNY 0.0556 from CNY 0.2261 [4] Industry Overview - The network visualization industry has evolved over the past decade, transitioning from basic operational analysis to intelligent management of data services, leveraging new technologies such as big data and IoT [6] - The industry is currently in a rapid growth phase, driven by the integration of AI and the increasing demand for intelligent operations in data centers and smart computing [6][7] - The company is recognized as one of the earliest entrants in the network visualization field, maintaining a leading position in technology and market share [6] Business Operations - The company's main business includes the development and provision of intelligent system solutions, focusing on network visualization and intelligent system platforms [7] - The network visualization business involves real-time data collection and analysis to enhance network management and security, while the intelligent system platform provides hardware and software solutions for various industries [8] - The company has expanded its product applications to intelligent computing centers, integrating network visualization with computing resource management [8] Strategic Focus - The company aims to leverage its technological expertise to enhance its offerings in the intelligent computing sector, particularly in the context of national strategies promoting domestic information technology and smart computing [11] - The focus on domestic information technology has led to partnerships with local chip manufacturers to develop competitive products and solutions [11] - The company is actively involved in the development of AI-integrated solutions, addressing the growing demand for intelligent systems across various sectors [12]