Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a revenue of 4.02 billion yuan for the first half of 2025, representing a year-on-year increase of 15.6%. The net profit attributable to shareholders was 480 million yuan, up 12.4% year-on-year [2][4]. - The company’s revenue from power plants and industrial automation reached 2.003 billion yuan, a significant increase of 31.3% year-on-year, while revenue from grid automation was 1.726 billion yuan, up 2.2% year-on-year [9]. - The gross margin for the first half of 2025 was 30.52%, a decrease of 2.94 percentage points year-on-year, indicating pressure on the gross profit side [9]. - The company achieved a 60% increase in bid amounts for the State Grid's centralized bidding and a 15% increase for the Southern Grid's framework bidding, ranking among the top in bid scale [9]. Financial Performance - In Q2 2025, the company reported a revenue of 2.19 billion yuan, a year-on-year increase of 13.4%, but the net profit decreased by 3.2% to 230 million yuan [2][4]. - The company’s total revenue is projected to reach 8.305 billion yuan in 2025, with a net profit of 844 million yuan, corresponding to a PE ratio of approximately 17.87 times [14]. - The company’s four expense ratios for the first half of 2025 were 17.60%, a decrease of 1.51 percentage points year-on-year, with reductions in sales, management, and R&D expense ratios [9].

Investment Rating - The investment rating for the company is upgraded to "Buy" with a target price reflecting a potential return of over 20% within the next six months [6][16]. Core Insights - The company has shown steady revenue growth, achieving a total revenue of 6.95 billion yuan in 2024, representing a year-over-year increase of 20.86%. The net profit attributable to the parent company reached 715.59 million yuan, up 14.09% year-over-year [1]. - The company is expected to continue its robust growth trajectory, with revenue projections for 2025 set at 8.22 billion yuan, reflecting an 18.29% growth rate [4]. Summary by Sections Business Performance - In 2024, the company achieved revenue of 6.95 billion yuan, with a net profit of 715.59 million yuan and a gross margin of 32.33%, which is a slight decrease of 2.11 percentage points year-over-year [1]. - The first quarter of 2025 saw revenue of 1.83 billion yuan, a year-over-year increase of 18.34%, and a net profit of 241 million yuan, up 33.38% year-over-year [1]. Business Segmentation - The company’s revenue from grid automation in 2024 was 3.31 billion yuan, a year-over-year increase of 13.18%, with a gross margin of 41.54% [2]. - Revenue from power plant and industrial automation reached 3.12 billion yuan, marking a 25.35% increase year-over-year, with a gross margin of 25.48% [2]. Future Outlook - The company plans to expand its core business by targeting industry users and regional distribution markets, focusing on high-quality development in renewable energy and energy storage [3]. - The company aims to enhance its international presence, particularly in Southeast Asia and Africa, by strengthening local market strategies and expanding its product offerings [3]. - The data center segment is expected to contribute to growth, with the company providing core telecommunications equipment for major domestic data center projects [3]. Financial Forecast - Revenue forecasts for 2025, 2026, and 2027 are adjusted to 8.22 billion yuan, 9.43 billion yuan, and 10.75 billion yuan, respectively, with net profit projections of 856.96 million yuan, 993.13 million yuan, and 1.15 billion yuan [4]. - The company’s valuation is projected at 16X, 13X, and 12X PE for the years 2025, 2026, and 2027, respectively [4].