Core Insights - The company has shown improvement in profitability across multiple business segments, with a notable increase in gross margin in Q2 2025, reaching 34.18%, marking an end to the continuous decline since Q2 2020 [1] - The growth in gross margin is primarily driven by an increase in the proportion of high-margin overseas and industrial firefighting revenues, as well as recovery in domestic alarm margins [1][2] Group 1: Financial Performance - In H1 2025, overseas business achieved a gross margin of 48.12%, with revenue of 392 million, a year-on-year increase of 4.83%, accounting for 18.22% of total revenue [1] - The industrial firefighting segment generated revenue of 133 million in H1 2025, up 3.37% year-on-year, contributing 6.18% to total revenue [1] - The overall gross margin for the domestic alarm segment has stabilized, with a year-on-year increase of 2.15% in H1 2025 [1] Group 2: Industrial Firefighting Growth - The company has focused on the industrial firefighting sector, achieving revenue of 133 million in H1 2025, with significant contributions from data centers and related projects, which saw over 90 million in revenue, a growth of over 50% [2] - The company has secured contracts for major projects, including the national tunnel monitoring system renovation and the Beijing Daxing International Airport express line, indicating strong future growth potential in industrial firefighting [2] Group 3: Technological Advancements - The company is exploring the integration of firefighting and communication through its "Zhu Huan" series chips, aiming to transform traditional firefighting into a more intelligent, robotic approach [3] - The upcoming launch of robotic products is expected to enhance operational efficiency in firefighting scenarios, addressing both repetitive and hazardous tasks [3] Group 4: Profit Forecast and Investment Recommendation - The company forecasts revenues of 4.992 billion, 5.572 billion, and 6.678 billion for 2025-2027, with year-on-year growth rates of 1.41%, 11.61%, and 19.86% respectively [4] - Projected net profits for the same period are 418 million, 495 million, and 632 million, with growth rates of 18.34%, 18.44%, and 27.8% respectively [4] - The current stock price corresponds to a PE ratio of 22.62, 19.1, and 14.94 for 2025-2027, maintaining a "strong buy" recommendation [4]