Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company continues to enhance its core competitiveness, with significant technological advantages in the aerospace forging sector [1] - The performance in the first half of 2025 showed a decline in revenue and net profit, primarily due to cyclical adjustments in the industry and fluctuations in customer demand [8] - The company is expected to see a recovery in demand in the second half of the year, supported by its strategic focus on next-generation military aircraft and engine forgings [8] Financial Performance Summary - For the first half of 2025, the company reported total revenue of 785 million yuan, a year-on-year decrease of 24.80%, and a net profit attributable to shareholders of 270 million yuan, down 17.47% from the previous year [1][8] - The gross profit margin improved to 34.5% from approximately 31% in the same period last year, driven by a higher proportion of high-value titanium alloy forgings and a decrease in raw material costs [8] - The company’s operating cash flow showed a net outflow of 262 million yuan, indicating ongoing operational pressures [8] Earnings Forecast and Valuation - The earnings forecast for the company has been adjusted, with net profits expected to be 459 million yuan, 571 million yuan, and 596 million yuan for 2025, 2026, and 2027 respectively [8] - The corresponding price-to-earnings (P/E) ratios are projected to be 32, 25, and 24 times for the same years [8] - The company’s financial structure remains robust, with a debt-to-asset ratio of 31.15% and a current ratio of 3.73, indicating a safe financial position [8]