Core Viewpoint - The company reported a revenue of 399 million yuan for the first half of 2025, reflecting a year-on-year growth of 3.68%, with a net profit attributable to shareholders of 96 million yuan, up 7.35% year-on-year, and a non-recurring net profit of 83 million yuan, increasing by 9.57% year-on-year, indicating that the performance is in line with expectations despite weak industry demand and product recall impacts [1] Group 1: Financial Performance - In Q1 and Q2 of 2025, the company achieved revenues of 197 million yuan and 202 million yuan respectively, with year-on-year growth rates of 2.63% and 4.71% [1] - The gross profit margin for the first half of 2025 was 57.87%, a decrease of 1.52 percentage points year-on-year, primarily due to intensified industry competition [2] - The net profit margin for the first half of 2025 was 23.93%, an increase of 0.82 percentage points year-on-year, attributed to improved efficiency in expense allocation [2] Group 2: Product Development and Market Trends - The company is experiencing rapid growth in products such as defocus lenses and PMC, with the PMC ultra-bright series seeing a revenue increase of 31.8% year-on-year, and the new 1.74 series products achieving a remarkable growth of 258% [2][3] - The company is well-positioned to benefit from the growth of the smart glasses industry, having partnered with Xiaomi as the exclusive optical partner for their AI glasses, leveraging its technological and channel advantages [3] Group 3: Profit Forecast and Valuation - Due to weak industry demand and product recall impacts, the company has revised its net profit forecasts for 2025 and 2026 down by 14% and 15% to 196 million yuan and 226 million yuan respectively, corresponding to price-earnings ratios of 50 and 43 times [4] - The target price is maintained at 60.00 yuan, reflecting a potential upside of 23% from the current stock price, based on improved market risk appetite and the growth prospects of new businesses like AI smart glasses [4]