Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's traditional business fundamentals are stable, while its satellite and automotive sectors are expected to create new growth curves [3] - The company has achieved breakthroughs in commercial satellite communication products and is expected to begin mass supply to North American customers in the second half of 2025 [3] - The automotive sector is seeing increased collaboration with major domestic and international manufacturers, with a growing product matrix that includes wireless charging modules and advanced radar systems [3] - The company is projected to benefit from a recovery in the consumer electronics industry and has established a solid business foundation in traditional sectors [10] Financial Projections - Total revenue is forecasted to reach 97.05 billion yuan in 2025, with a net profit of 7.29 billion yuan, and corresponding P/E ratios of 34, 31, and 26 for the years 2025 to 2027 [10] - Revenue is expected to grow at a compound annual growth rate (CAGR) of 15.85% from 2024 to 2025, with net profit growth rates of 26.89% for the same period [10] - The company anticipates significant contributions from its automotive sector over the next 2-3 years, supporting overall growth [3]

Group 1: Satellite Communication Products - The company has developed satellite communication products covering "star-ground-end" applications, including ground station terminals, satellite communication payloads, and terminal applications [2] - Key products include satellite active phased array antennas supporting Ka and Ku bands, and mobile satellite antennas for trains and ships [2] - The company has made strategic investments totaling 30 million CNY in core satellite component companies and established a 50 million CNY space industry fund [3] Group 2: Microwave Antenna Business - The microwave antenna business has seen a revenue increase of 84% year-on-year, with a gross margin of 33%, accounting for 22% of total revenue [3] - The growth is driven by the demand for wireless transmission in underdeveloped overseas regions, complementing fiber optic communication [3] Group 3: Optical Modules - The company’s 800G optical modules have achieved small-scale shipments, while the 1.6T optical module is in early-stage development [4] - Continuous monitoring of industry trends is emphasized to promote product development and commercialization [4] Group 4: Millimeter Wave Antennas - Millimeter wave antennas are being tested for high-speed communication between data centers, with potential to replace fiber optics and reduce deployment costs by 30% [5] - The company has completed laboratory validation of its 28GHz product and is conducting joint tests with leading operators, holding 12 related patents [5]

Core Viewpoint - The company has made advancements in millimeter-wave antenna technology for short-range communication in data centers, which could significantly reduce deployment costs by replacing fiber optics [1] Group 1 - The company has completed laboratory validation of multi-frequency products and is currently conducting joint tests with leading operators [1] - The technology leverages 5G beamforming technology, and the company has applied for multiple related patents [1] - Investors are encouraged to follow the company's announcements for specific progress updates [1]

Core Insights - The company reported a revenue of 3.703 billion yuan for the first half of 2025, a year-on-year decrease of 1.15%, and a net profit attributable to shareholders of 162 million yuan, down 20.18% [1] - Despite the overall decline in the first half, the second quarter showed strong performance with a revenue of 1.96 billion yuan, a year-on-year increase of 3.82%, and a net profit of 84.34 million yuan, significantly up by 65.12% [1] - The company is transitioning from a consumer electronics-focused business model to a diversified strategy that includes satellite communication and smart automotive sectors [2] Financial Performance - The first half of 2025 saw a revenue of 3.703 billion yuan, down 1.15% year-on-year [1] - The net profit attributable to shareholders for the same period was 162 million yuan, reflecting a decline of 20.18% [1] - In Q2 2025, the company achieved a revenue of 1.96 billion yuan, marking a 3.82% increase year-on-year, and a net profit of 84.34 million yuan, which is a 65.12% increase [1] Business Segments - The antenna business continues to maintain a leading position in the industry, while the wireless charging segment benefits from increased demand in smartphones, wearables, and smart vehicles [1] - The precision structural components business has seen stable growth due to new model introductions and increased orders from major clients [1] - The company has strengthened its global presence with production bases in Vietnam and Mexico, laying the groundwork for future business expansion [1] Emerging Business Areas - Significant breakthroughs have been made in emerging business areas, including successful applications of LCP modules and millimeter-wave antennas in North American markets, as well as expansion into smart automotive and commercial satellite communication sectors [2] - The UWB module is widely used in smart automotive keys and IoT devices, with plans to extend into humanoid robots [2] - The company has over 60 patents in high-end MLCC products, which have passed customer testing and entered mass production, with expectations to capture a larger market share in smart automotive and AI server sectors [2] Future Growth Drivers - Commercial satellite communication and smart automotive sectors are identified as key growth engines for the company [2] - The company has added North American clients in the satellite communication field and anticipates bulk supply in the second half of the year while also expanding into the domestic market [2] - Collaborations with major domestic and international OEMs and Tier 1 suppliers in the smart automotive sector are expected to drive performance growth in the next 2-3 years [2]