Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 883 million yuan in Q1 2025, a year-on-year decrease of 3.64%, and a net profit attributable to shareholders of 69 million yuan, down 12.37% year-on-year. The decline is attributed to a decrease in downstream real estate completion area and intensified industry competition. However, the company managed to narrow the revenue decline through active price adjustments and cost optimization, alongside rapid growth in industrial and overseas businesses. The profit forecasts for 2025-2027 have been adjusted, with expected net profits of 552 million yuan, 660 million yuan, and 728 million yuan respectively, corresponding to EPS of 0.75 yuan, 0.90 yuan, and 0.99 yuan. The current stock price corresponds to PE ratios of 15.1, 12.6, and 11.4 for 2025-2027, indicating optimism about the company's expansion into new scenarios and overseas market opportunities [5][6][7]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 883 million yuan, down 3.64% year-on-year, and a net profit of 69 million yuan, down 12.37% year-on-year. The decline is linked to reduced real estate activity and increased competition [5]. - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 552 million yuan, 660 million yuan, and 728 million yuan, with corresponding EPS of 0.75 yuan, 0.90 yuan, and 0.99 yuan [5][8]. Business Growth - The company is capitalizing on the domestic commercial and residential fire safety market's upgrade trend, with a steady increase in market share. The industrial project shipments under the "Qingniao" brand grew by 39.45% year-on-year, and industrial alarm revenue increased by 52.30% year-on-year. Overseas business revenue also rose by 20.46% [6]. - New product developments include the integration of AI in fire extinguishing drones and the introduction of a gas extinguishing system that received the first domestic UL certification. The company is also expanding into the water system fire safety sector [6]. Future Outlook - The fire safety product industry is undergoing significant changes driven by policy, technology, and market dynamics. The company aims to strengthen its domestic commercial fire safety business while focusing on industrial and overseas fire safety as core growth engines. The company is exploring integrated solutions combining fire safety and communication technologies to achieve its goal of exceeding 10 billion yuan in scale [7].