Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected relative price increase of over 15% compared to the benchmark index [6][12]. Core Insights - The company achieved a revenue of 1.938 billion yuan in H1 2025, representing a year-on-year growth of 26.58%, and a net profit attributable to shareholders of 305 million yuan, up 106.45% year-on-year [1]. - The gross margin for H1 2025 reached 39.27%, an increase of 6.08 percentage points year-on-year, with Q2 2025 gross margin at 40.12%, marking a continuous increase for six consecutive quarters [1][2]. - The company is focusing on the smart wearable and smart home markets, with significant advancements in its product offerings, including the BES2800 chip used in various applications such as smart glasses and wireless microphones [1][3]. Financial Performance - For Q2 2025, the company reported a revenue of 944 million yuan, a year-on-year increase of 7.48%, but a quarter-on-quarter decrease of 5.13% [1]. - The net profit for Q2 2025 was 114 million yuan, reflecting a year-on-year decrease of 4.79% and a quarter-on-quarter decrease of 40.31% [1][2]. - The company’s R&D expenses for H1 2025 were 395 million yuan, a year-on-year increase of 22.77%, with R&D personnel accounting for 86.25% of the total workforce [4]. Future Projections - The company is projected to achieve net profits of 798 million yuan, 1.189 billion yuan, and 1.494 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 63, 42, and 33 [4][5]. - Revenue forecasts for the upcoming years are 4.499 billion yuan in 2025, 5.959 billion yuan in 2026, and 7.429 billion yuan in 2027, with growth rates of 37.9%, 32.5%, and 24.7% respectively [5][10].