Core Viewpoint - The company reported a revenue of 700 million yuan for 1H25, reflecting a year-on-year increase of 6.3%, and a net profit attributable to shareholders of 104 million yuan, corresponding to an earnings per share of 0.99 yuan, which is a year-on-year increase of 10.76% [1] Financial Performance - In 2Q25, the company achieved a revenue of 349 million yuan, a decrease of 4.29% year-on-year, with a net profit of 51 million yuan, an increase of 0.68% year-on-year, primarily due to factory relocation impacting overall performance [1][3] - The gross margin for 2Q25 was approximately 27.5%, an increase of 5.9 percentage points year-on-year and 1.7 percentage points quarter-on-quarter, attributed to an improved product mix and higher margins in the heat pump and automotive businesses [3] Business Segments - The automotive business continued to grow significantly, while the HVAC (heating, ventilation, and air conditioning) business experienced a slight decline. For 1H25, the revenue from HVAC and automotive segments was 422 million yuan and 260 million yuan, respectively, with year-on-year changes of -3.98% and +28.18% [2] - The HVAC segment faced challenges due to a slowdown in overall terminal demand, but the heat pump business showed sustained high growth. The company is also expanding into energy-saving solutions for data centers [2] - The automotive segment is enhancing its product offerings and has completed the construction of a new production base for electric vehicle electronics and smart manufacturing, expected to drive continued revenue growth [2] Future Outlook - The company anticipates a return to growth following the completion of the factory relocation, with expectations of sequential improvement in performance [3] - Due to the impact of the factory relocation on 2Q25, the net profit forecast for 2025 has been adjusted down by 12% to 207 million yuan, while the 2026 net profit forecast has been raised by 14% to 324 million yuan, reflecting positive contributions from the data center and automotive businesses [4] - The current stock price corresponds to a price-to-earnings ratio of 42.4x for 2025 and 27.1x for 2026, with a target price increase of 25% to 100 yuan, indicating a potential upside of 7.5% compared to the current stock price [4]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has demonstrated steady growth in performance, with multiple business segments contributing to its success. The telecommunications and automotive sectors have shown rapid growth, while the consumer electronics segment continues to perform well. The company has successfully integrated new product projects and expanded its client base in emerging fields such as AR/VR and 3D printing [7][6] - The company reported a revenue of 124.5 billion yuan for the first half of 2025, representing a year-on-year increase of 20.18%, and a net profit of 6.644 billion yuan, up 23.13% year-on-year. The second quarter of 2025 saw a revenue of 62.715 billion yuan, a 22.51% increase year-on-year [7] - The company has provided guidance for the third quarter of 2025, forecasting a net profit of 4.246 to 4.699 billion yuan, which is a year-on-year increase of 15.41% to 27.74% [7] Financial Performance Summary - Revenue projections for the company are as follows: 2023A: 231.91 billion yuan, 2024A: 268.79 billion yuan, 2025E: 323.50 billion yuan, 2026E: 387.71 billion yuan, 2027E: 428.70 billion yuan, with a revenue growth rate of 8.4% in 2023, increasing to 20.4% in 2025 [6] - The net profit forecast for the company is: 2023A: 10.95 billion yuan, 2024A: 13.37 billion yuan, 2025E: 16.64 billion yuan, 2026E: 20.11 billion yuan, 2027E: 23.53 billion yuan, with a net profit growth rate of 19.5% in 2023, reaching 24.5% in 2025 [6] - The earnings per share (EPS) are projected to be: 2023A: 1.54 yuan, 2024A: 1.86 yuan, 2025E: 2.29 yuan, 2026E: 2.77 yuan, 2027E: 3.24 yuan, with corresponding price-to-earnings (PE) ratios of 22.4 in 2023, decreasing to 19.6 in 2025 [6] Business Segment Performance - The consumer electronics segment generated revenue of 97.799 billion yuan in the first half of 2025, a year-on-year increase of 14.32%, while the telecommunications segment saw revenue of 11.098 billion yuan, up 48.65%, and the automotive segment reached 8.658 billion yuan, an increase of 82.07% [7] - The company has successfully completed the acquisition of assets from Wentech Technology, enhancing its product integration capabilities [7] - The company continues to expand its market share among leading cloud service providers and AI server clients, with multiple high-value products being delivered in bulk [7]