Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 187.68 [1][5]. Core Views - The company has shown strong revenue growth driven by high power cutting demand and expansion into overseas markets, with H1 2025 revenue reaching RMB 1.103 billion, a year-on-year increase of 24.89% [2]. - The smart welding business is rapidly developing, providing new growth opportunities for the company [1][2]. - The company maintains a technological advantage in the high-power cutting market, and the continuous iteration of its products is expected to open up more application scenarios, leading to sustained revenue growth [2][3]. Summary by Sections Financial Performance - In H1 2025, the company achieved a net profit of RMB 640 million, up 30.32% year-on-year, with a Q2 revenue of RMB 608 million, reflecting a 20.92% year-on-year increase [1][2]. - The company’s sales, management, and R&D expense ratios were 4.74%, 5.54%, and 10.73%, respectively, showing slight changes year-on-year [2]. Laser Cutting Business - The company has launched a new generation of cutting heads and is advancing its combination sales strategy, enhancing automation through software and hardware collaboration [3]. - The new BLT6 intelligent cutting head, introduced in May 2025, has improved edge detection and processing efficiency significantly, with a 217% increase in edge detection speed and a 150% increase in overall efficiency [3]. Smart Welding Business - The company has developed an intelligent welding robot control system that utilizes AI deep learning algorithms, allowing for greater adaptability and efficiency in various industrial applications [4]. - The company has successfully adapted its smart welding robots to over ten brands, including Fanuc, and is penetrating more downstream industries [4]. Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are RMB 1.205 billion, RMB 1.547 billion, and RMB 1.917 billion, respectively, with corresponding EPS estimates of RMB 4.18, RMB 5.37, and RMB 6.65 [5][11]. - The target price is based on a PE ratio of 44.9x for 2025, reflecting a downward adjustment from the previous target price of RMB 220.88 [5].

Core Viewpoint - The company is committed to enhancing operational quality and investor returns through its "Quality Improvement and Efficiency Enhancement" action plan for 2025, aiming to maintain a positive image in the capital market and promote sustainable development [1]. Group 1: Business Performance - In the first half of 2025, the company achieved a revenue of 1,103.48 million yuan, representing a year-on-year growth of 24.89%, and a net profit attributable to shareholders of 640.12 million yuan, up 30.32% year-on-year [4]. Group 2: Technological Advancements - The company launched the new FSCUT9200 steel cutting system, which supports various cutting processes, enhancing efficiency in the bridge steel structure industry and traditional boiler pipe processing [2]. - In the intelligent welding sector, the company introduced a multi-machine collaborative solution that enhances production efficiency and factory utilization [2]. - The company developed the "UltraOCT Real-time Laser Welding Penetration Measurement System" for precise monitoring and quality control in laser welding processes [3]. Group 3: Research and Development - The company maintains a high R&D investment intensity, with R&D expenses accounting for 10.73% of revenue in the first half of 2025, and has filed for 7 new patents during the same period [6]. - The company is focused on continuous improvement and iteration of existing technology platforms to strengthen core technical capabilities [4]. Group 4: Corporate Governance - As of June 30, 2025, the board of directors, supervisors, and senior management collectively held 189,389,556 shares, accounting for approximately 65.67% of the total share capital, ensuring alignment of management and investor interests [6]. Group 5: Investor Relations and Returns - The company plans to distribute a cash dividend of 21.60 yuan per 10 shares, totaling 147.52 million yuan, which represents 30.01% of the net profit attributable to shareholders for the first half of 2025 [7]. - The company emphasizes timely and flexible dividend distribution to share operational results with shareholders [7]. Group 6: Information Disclosure - The company has improved the quality of information disclosure and enhanced communication with investors through various platforms, ensuring transparency and equal access to information [8].