Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 21.27 CNY for the next six months [5]. Core Views - The company reported a revenue of 7.8 billion CNY for the first half of 2025, reflecting a year-on-year increase of 1.0%, and a net profit attributable to shareholders of 540 million CNY, up 22.8% year-on-year [1]. - The second quarter saw a revenue of 3.97 billion CNY, down 6.6% year-on-year, while the net profit for the same period was 300 million CNY, an increase of 9.8% year-on-year. The revenue decline was attributed to overseas tariff policies, but the company improved its profitability through cost reduction and efficiency enhancement [1][2]. - The company is positioned as a leading exporter of Western-style small home appliances in China, with ongoing product launches and channel expansions expected to benefit from domestic appliance replacement subsidy policies [4]. Summary by Sections Financial Performance - In Q2, the company's gross profit margin improved by 0.1 percentage points year-on-year, driven by domestic sales subsidy policies that enhanced the product mix [3]. - The net profit margin for Q2 was 7.5%, an increase of 1.1 percentage points year-on-year [3]. - Operating cash flow showed a net outflow of 120 million CNY in Q2, compared to a net inflow of 270 million CNY in the same period last year, primarily due to increased cash payments for goods and services [3]. Sales Performance - Q2 external sales revenue decreased by 7.7% year-on-year, influenced by U.S. tariff policies, while internal sales revenue fell by 2.6%, a significant improvement from a 4.9% decline in Q1 [2]. - The company anticipates that as production capacity in Indonesia gradually increases, the pressure from overseas tariffs will ease, and domestic demand for small home appliances will continue to improve due to ongoing subsidies [2]. Future Outlook - The company forecasts earnings per share (EPS) of 1.42 CNY, 1.63 CNY, and 1.88 CNY for 2025, 2026, and 2027, respectively [4]. - The projected price-to-earnings (PE) ratio for 2025 is 15 times, indicating a favorable valuation compared to the expected growth in earnings [4].