Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Views - The company is a leading domestic copper-based materials enterprise accelerating its high-end transformation, with significant growth in carbon fiber and high-end equipment sectors benefiting from military and aerospace demand [2][4] - The company achieved revenue of 288.03 billion yuan in H1 2025, a year-on-year increase of 16.05%, and a net profit of 2.51 billion yuan, up 48.83% year-on-year [2][4] Summary by Sections Domestic Copper-Based Materials Leader - The company produces precision copper strips, copper conductor materials, copper alloy wires, precision special steel, carbon fiber composite materials, and high-end thermal equipment, with an annual production capacity of over 300,000 tons of precision copper strips, ranking first in China [2][11] - The company has undergone multiple acquisitions to enhance its high-end copper material capabilities and enter the military new materials sector [11][22] Tian Niao High-Tech as Core Supplier - Tian Niao High-Tech, a 90% subsidiary, is a key supplier of carbon fiber preforms for aerospace applications, with expected surges in demand due to military exercises and the expansion of the civil aviation market [27][31] - The company is responsible for supplying carbon fiber preforms for all domestic aircraft brake units and nearly all series of solid rocket engine throat liners [27][31] Ding Li Technology's Expansion - Ding Li Technology, holding 66.72% of the company, is a leading enterprise in special thermal equipment, planning to spin off and list separately while expanding into 3D printing parts [56][59] - The company focuses on advanced thermal processing equipment and has developed a production line for metal-based 3D printing materials [59][64] Xin Hai Gao Dao's Growth in Robotics - Xin Hai Gao Dao, an 82.06% subsidiary, leads in the copper conductor segment and is entering the robotics field, creating new growth points [3][4] - The company has successfully mass-produced ultra-fine copper conductors for robotics and electric vehicles, establishing strategic partnerships with well-known enterprises [3][4]