Investment Rating - The report maintains a "Buy" investment rating for the company [3][5]. Core Views - The company achieved a total operating revenue of 3.02 billion yuan in H1 2025, representing a year-on-year increase of 13.8%. The net profit attributable to shareholders was 500 million yuan, up 17.4% year-on-year, with a non-recurring net profit of 450 million yuan, reflecting a growth of 14.1% [1]. - The gross margin for H1 2025 was 29.5%, an increase of 1.86 percentage points year-on-year, while the net profit margin was 16.8%, up 0.25 percentage points year-on-year [1]. - The thin-film optical business has become the core driver of the company's performance, with significant contributions expected from non-mobile products from the Vietnam plant and an increase in market share from major clients in the mobile sector [2]. - The company has seen a 79% year-on-year increase in revenue from automotive optical products, benefiting from the rapid penetration of AR-HUD technology in the automotive sector [2]. - In the AR/VR field, the company has established a comprehensive layout in display systems, 3D modules, and core optical components, positioning itself to benefit from the industrialization of major clients [3]. - The company aims to expand its overseas manufacturing scale while focusing on the domestic market, aspiring to become a leading global provider of AR optical display solutions [3]. Financial Summary - The company is projected to achieve net profits of 1.25 billion yuan and 1.53 billion yuan in 2025 and 2026, respectively [3]. - The financial forecast indicates a revenue growth of 16.01% in 2023, 23.67% in 2024, and 17.68% in 2025, with net profit growth of 4.15% in 2023 and 71.57% in 2024 [4]. - The projected earnings per share (EPS) are expected to be 0.90 yuan in 2025 and 1.10 yuan in 2026 [4]. - The company’s price-to-earnings (P/E) ratio is forecasted to decrease from 44.92 in 2023 to 14.78 in 2027, indicating an improving valuation over time [4].

Core Viewpoint - The Apple supply chain is experiencing heightened interest from institutional investors, driven by strong expectations for the new iPhone 17's production cycle and upgrades in components and modules [1][2]. Group 1: iPhone 17 Production and Upgrades - iPhone 17 has entered large-scale production, with major manufacturer Foxconn ramping up hiring in anticipation of peak season [1]. - The iPhone 17 series is expected to see a price increase of approximately $50 compared to the previous generation, with the iPhone 17 starting at $799, the iPhone 17 Pro at $1,049, and the iPhone 17 Pro Max at $1,249 [1]. - Analysts predict significant upgrades in components such as SoC chips, cooling systems, and battery technology, driven by enhanced AI capabilities [2]. Group 2: Institutional Interest in Supply Chain Companies - Over 50 institutions have conducted research on key Apple supply chain companies, including Crystal Optoelectronics, Industrial Fulian, and Lens Technology [2]. - Crystal Optoelectronics reported a total revenue of 1.482 billion yuan in Q1 2025, a year-on-year increase of 10.2%, and a net profit of 221 million yuan, up 23.67% [3]. - Industrial Fulian, Apple's largest contract manufacturer, achieved total revenue of 360.76 billion yuan in H1 2025, a 35.58% year-on-year growth, with a net profit of 12.113 billion yuan, up 38.61% [3]. Group 3: Future Innovations and Market Trends - Lens Technology, a major supplier of glass covers and metal casings for Apple, reported Q1 2025 revenue of 17.063 billion yuan, a 10.1% increase, and a net profit of 429 million yuan, up 38.71% [4]. - The true "second curve" for the Apple supply chain may lie in breakthroughs in foldable screens and AI glasses, with predictions for the first foldable iPhone to launch in September 2026 at a price of $1,999 [4]. - Analysts suggest that the Apple supply chain could enter a valuation recovery phase as concerns over AI innovation and tariffs dissipate, with a focus on core suppliers and new product opportunities [5].