Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant operational turning point in its main business, with new applications gradually yielding results. The manufacturing demand is expected to recover, and the company is likely to benefit from emerging applications and the trend of laser technology going global [2][6]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. The net profit attributable to the parent company was 73 million yuan, a decrease of 23.78%. The net profit excluding non-recurring items was 32 million yuan, down 38.34%. In Q2 2025, revenue reached 949 million yuan, up 20.73% year-on-year, while the net profit attributable to the parent company was 56 million yuan, up 73.79% [2][6]. Business Development - The company is solidifying its leading position in the market, with a robust recovery in manufacturing demand and a steady expansion into new applications. The international business is also progressing, with overseas revenue growing nearly 40% year-on-year in the first half of 2025. New customer centers in Turkey and Japan have commenced operations, and the company is preparing to establish offices in Germany, Mexico, Thailand, and South Korea [2][11]. New Applications - The company is actively expanding into new application areas, including: 1. Consumer market: Over 10,000 units of consumer-grade laser equipment sold in the first half of 2025, responding to the trend of miniaturization and smart consumer products [11]. 2. Medical field: Introduction of specialized thulium lasers targeting urology, achieving import substitution and passing performance tests [11]. 3. Security field: Development of key technologies for laser security, with significant revenue growth in its subsidiary [11]. Product Innovation - The company has launched new high-power laser products, including a semiconductor laser suitable for various applications such as electric vehicles and 3D printing. The UV nanosecond laser has been well-received in PCB precision processing, showcasing excellent performance [11]. Profit Forecast - The company is expected to achieve net profits of 182 million yuan, 285 million yuan, and 356 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 91x, 58x, and 47x [11].

Group 1: Company Overview and Core Competencies - The company is one of the earliest in China to develop DPSS solid-state lasers and has a leading position in the domestic market for UV nanosecond lasers, with continuous sales growth [3][4] - It possesses core technologies in laser manufacturing, including nanosecond, sub-nanosecond, picosecond, and femtosecond laser processing [3] - The company has achieved global recognition for its laser products used in critical semiconductor manufacturing processes [3] Group 2: Financial Performance - In the first half of 2024, the laser business generated revenue of CNY 144 million, a year-on-year increase of 48.52%, with a gross margin of 54.38% [4] - The company maintains a stable gross margin over the years, reflecting strong product and brand competitiveness [4][6] Group 3: Governance and Financial Health - The board of directors consists of professionals with diverse backgrounds, ensuring diligent decision-making and protection of shareholder interests [6] - The company has a low debt-to-asset ratio and low interest-bearing debt, supporting sustainable development [6] Group 4: Business Segments and Developments - In the semiconductor sector, revenue reached CNY 9.9473 million in the first half of 2024, focusing on laser products for silicon carbide annealing processes [7] - The company is a pioneer in the Micro LED field, having proposed innovative processes and successfully delivered key equipment to major clients [8] - In the photovoltaic sector, the company has developed new technologies and equipment, such as "LACE laser-assisted chemical etching equipment" and "XBC laser graphic equipment," which are currently being validated by leading customers [8] Group 5: Consumer Electronics and International Expansion - The company has launched a series of laser products for the consumer electronics sector, addressing various applications such as laser cutting for microcrystalline glass and laser welding for foldable screen hinges [9] - The company is expanding its overseas market presence, targeting regions like the US, Japan, Germany, South Korea, and India, primarily serving clients in the semiconductor, medical, and consumer goods industries [9]