Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to domestic market pressures and weak downstream demand, while showing growth in overseas markets. Financial Performance - In H1 2025, the company achieved revenue of 1.235 billion yuan, a year-on-year decrease of 17.22%, and a net profit attributable to shareholders of 242 million yuan, down 19.58%. The net profit after deducting non-recurring items was 204 million yuan, a decline of 29.29% [1] - In Q2 2025, the company recorded revenue of 581 million yuan, a year-on-year decrease of 27.50%, with a net profit of 110 million yuan, down 31.07%, and a net profit after non-recurring items of 97 million yuan, a decline of 38.13% [1] Operational Analysis - Domestic revenue in H1 2025 was 810 million yuan, reflecting a year-on-year decline of 25.79%, indicating short-term pressure due to weak domestic demand. The gross margin for the domestic market was 27.80%, down 2.08 percentage points year-on-year [2] - The new residential construction area in May to July 2025 showed a year-on-year decline of 17.5%, 13.2%, and 8.7%, respectively, with a narrowing decline in June and July, suggesting potential recovery in the second half of the year [2] - Overseas revenue in H1 2025 was 425 million yuan, an increase of 6.12% year-on-year, with a gross margin of 39.93%, up 3.67 percentage points. The company is actively participating in major overseas exhibitions and expanding its dealer network, focusing on markets in Europe, Southeast Asia, and the Middle East [2] Strategic Initiatives - The company is promoting automation upgrades in furniture manufacturing through its subsidiary, Xing Shi Robotics, which develops specialized robots for various manufacturing processes, aiming to enhance efficiency and market share [3] - Another subsidiary, Dan Chi Precision, focuses on high-precision gears and components for robotics and aerospace applications, positioning itself in the robotics and low-altitude economy sectors [3] Profit Forecast and Valuation - The company forecasts revenues of 2.536 billion yuan, 2.829 billion yuan, and 3.207 billion yuan for 2025 to 2027, with net profits of 484 million yuan, 561 million yuan, and 663 million yuan, respectively. The corresponding price-to-earnings ratios are projected to be 15, 13, and 11 times [4]