Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Insights - The company reported significant growth in its financial performance, with a revenue of 577 million yuan for the first half of 2025, representing a year-over-year increase of 52.54%. The net profit attributable to shareholders reached 103 million yuan, up 110.27% year-over-year [2][4]. - The demand from downstream sectors such as consumer electronics, automotive intelligent driving, and optical communications has been actively explored, leading to increased revenue from key products: optical prisms (343 million yuan, YOY +68.90%), glass wafers (152 million yuan, YOY +23.89%), and glass aspheric lenses (47 million yuan, YOY +50.97%) [2][3]. - The company has a strong competitive position in the AR glass wafer sector, benefiting from the growing demand for AR products and the expansion of applications in various fields [3][4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 577 million yuan, with a net profit of 103 million yuan. The Q2 2025 revenue was 321 million yuan, showing a quarter-over-quarter increase of 25.63% [1][2]. - The overall gross margin improved to 35.98%, up 4.38 percentage points year-over-year, while the net profit margin reached 18.17%, an increase of 5.09 percentage points year-over-year [2]. Product Demand and Market Position - The company’s optical prism products are benefiting from the expanding demand for smartphone periscope lens modules. The glass aspheric lenses are gaining traction in various applications, including automotive electronics and handheld imaging devices [2][3]. - The report highlights the potential for glass-plastic hybrid lenses to become a future trend in smartphone applications, with increasing penetration rates expected [3]. Future Projections - Revenue projections for 2025 to 2027 are estimated at 1.545 billion yuan, 1.973 billion yuan, and 2.475 billion yuan, respectively. Corresponding net profits are projected to be 325 million yuan, 437 million yuan, and 556 million yuan [5][11]. - The report anticipates a continued strong performance in the company's micro-prism products and glass aspheric lenses, particularly in the smartphone and AR sectors [4][5].