Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [2][7] Core Views - The company demonstrates stable growth driven by both domestic and international markets, with a significant increase in revenue and net profit in the first half of 2025 [6][7] - The company is expanding its product offerings, particularly in the automotive sector, which is expected to contribute to future growth [6][7] Financial Performance Summary - In H1 2025, the company achieved revenue of 770 million yuan, a year-on-year increase of 26.7%, and a net profit of 150 million yuan, up 13.7% year-on-year [6] - The gross margin for H1 2025 was 40.5%, slightly down by 0.2 percentage points year-on-year, primarily due to lower margins in the newly expanded automotive sector [6] - The company’s revenue from overseas sales reached 120 million yuan in H1 2025, reflecting a 40.2% increase year-on-year, with a gross margin improvement of 10.4 percentage points to 53.1% [6] - Domestic sales amounted to 650 million yuan, a 24.6% increase year-on-year, although the gross margin decreased by 2.1 percentage points to 38.2% [6] Revenue and Profit Forecast - Revenue projections for 2025-2027 are estimated at 1.86 billion yuan, 2.22 billion yuan, and 2.63 billion yuan, representing year-on-year growth rates of 23.7%, 19.5%, and 18.6% respectively [7][8] - Net profit forecasts for the same period are 350 million yuan, 410 million yuan, and 470 million yuan, with growth rates of 10.0%, 17.3%, and 14.8% respectively [7][8] Key Financial Ratios - The report indicates an expected PE ratio of 18.8, 16.1, and 14.0 for 2025, 2026, and 2027 respectively, suggesting a favorable valuation trend [7][8] - The company’s net profit margin is projected to be 19.7% in H1 2025, down 2.1 percentage points year-on-year [6][7]