Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Views - The company has shown steady revenue growth in the first half of 2025, with a 13.1% year-on-year increase in revenue to 443 million yuan, although net profit decreased by 23.7% to 43 million yuan [1][2]. - The second quarter of 2025 saw significant improvement, with a 19.1% year-on-year revenue increase to 232 million yuan and a 49.9% quarter-on-quarter net profit growth [1][2]. - The company is benefiting from increased demand in the PCB sector due to the Southeast Asia investment boom and the rapid development of AI-related big data storage [2][3]. - The company has a strong order backlog, with contract liabilities increasing by 45.8% to 537 million yuan as of June 30, 2025, driven by growing demand and successful technology innovation [2][3]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 443 million yuan, a 13.1% increase year-on-year, while net profit decreased to 43 million yuan, down 23.7% [1]. - The gross margin for the first half of 2025 was 32.5%, a decline of 6.1 percentage points compared to the previous year [1]. - The second quarter of 2025 reported a revenue of 232 million yuan, a 19.1% increase year-on-year, and a net profit of 25 million yuan, reflecting a 3.2% year-on-year increase and a 49.9% quarter-on-quarter increase [1][2]. Business Development - The company has successfully developed new equipment for the PCB sector, including glass substrate-related devices for semiconductor packaging, and has received positive feedback from customers [3]. - In the renewable energy sector, the company has developed innovative equipment that improves material utilization and reduces production costs, receiving high recognition from clients [3]. - The company has expanded its market presence in Southeast Asia, particularly in Thailand, where it has established a production base and is serving numerous clients [2][3]. Profit Forecast and Valuation - The report forecasts the company's net profit for 2025 to be 168 million yuan, with expected earnings per share (EPS) of 0.56 yuan [3][9]. - The company is projected to have a net profit of 234 million yuan in 2026 and 282 million yuan in 2027, with corresponding EPS of 0.78 yuan and 0.94 yuan [3][9]. - The report maintains a positive outlook on the growth potential of PCB equipment, supported by a strong order backlog [3].

Core Viewpoint - The company reported a revenue of 443 million yuan in the first half of 2025, a year-on-year increase of 13.07%, while the net profit attributable to shareholders decreased by 23.66% to 42.5 million yuan, indicating a mixed performance driven by various market factors [1] Group 1: Financial Performance - In Q2 2025, the company achieved a revenue of 232 million yuan, reflecting a year-on-year increase of 19.14% and a quarter-on-quarter increase of 9.69% [1] - The net profit attributable to shareholders in Q2 was 25.5 million yuan, showing a year-on-year increase of 3.23% and a quarter-on-quarter increase of 49.93% [1] - The decline in half-year net profit was primarily influenced by the new energy equipment sector and rising costs related to depreciation and raw materials [2] Group 2: Market Trends and Opportunities - The PCB industry is experiencing a high demand due to the rapid development of AI-related big data storage, leading to a positive outlook for future orders and a recovery in production capacity [2] - The company’s contract liabilities reached a record high of 537 million yuan, a 45.92% increase compared to the end of 2024, indicating strong order intake, particularly in vertical continuous plating equipment for PCBs [2] - The company has successfully developed a horizontal three-in-one plating device, breaking the monopoly of foreign competitors and gaining recognition in the high-end PCB market [4] Group 3: Product Development and Innovation - The company is focusing on upgrading its equipment to meet the increasing demands for high-frequency and high-density interconnect PCBs, driven by the growth in AI server industries [3] - The introduction of glass substrate-related equipment is aimed at the semiconductor packaging market, with successful deliveries of PVD, TGV, and RDL equipment to customers [5] - The company’s strategic entry into the glass substrate market is expected to provide significant profit elasticity as the industry matures [5] Group 4: Future Outlook - The company anticipates a rebound in performance supported by the expansion of domestic PCB enterprises in Southeast Asia and the industrialization of high-end HDI and glass substrate markets [5] - Projected net profits for 2025, 2026, and 2027 are estimated at 181 million, 272 million, and 337 million yuan respectively, with corresponding PE ratios indicating strong growth potential [5]