Core Viewpoint - The report highlights the strong growth of Haowei Group in the automotive and emerging markets, with a significant recovery in demand for simulation solutions, leading to a "buy" rating for the company [1][6]. Financial Performance - In the first half of 2025, Haowei Group achieved revenue of 13.956 billion yuan, a year-on-year increase of 15.42%, and a net profit attributable to shareholders of 2.028 billion yuan, up 48.34% year-on-year [2]. - For Q2 2025, the company reported a revenue of 7.484 billion yuan, reflecting a year-on-year growth of 16.07% and a quarter-on-quarter increase of 15.63% [2]. Investment Highlights - Q2 2025 revenue reached a historical high, driven by technological reforms and expansion in high-end application product lines, particularly in automotive intelligent driving and smart terminal imaging markets [3]. - The gross margin for Q2 2025 was 30.00%, a slight decrease of 0.24% year-on-year, while the net profit margin improved to 15.48%, an increase of 2.97% year-on-year [3]. - R&D investment in semiconductor design sales for H1 2025 was approximately 1.724 billion yuan, a year-on-year increase of 9.01% [3]. Market Growth - The automotive CIS (Camera Image Sensor) business saw revenue of approximately 3.789 billion yuan in H1 2025, a year-on-year increase of 30.04% [4]. - The emerging market CIS business achieved revenue of about 1.173 billion yuan, a remarkable year-on-year growth of 249.42% [4]. - The company launched new products in the smartphone CIS segment, including a 50-megapixel sensor, which is expected to enhance market share [4]. Simulation Solutions - Demand for simulation solutions has significantly rebounded, with H1 2025 revenue from this segment reaching 767 million yuan, a year-on-year increase of 20.88% [5]. - The automotive simulation IC segment generated revenue of 120 million yuan, accounting for 15.66% of the simulation solutions business, with a year-on-year growth of 45.51% [5]. Profit Forecast and Investment Recommendation - The company is projected to achieve revenues of 30.16 billion yuan, 35.21 billion yuan, and 40.36 billion yuan for the years 2025, 2026, and 2027, respectively [6]. - The forecasted net profits for the same years are 4.338 billion yuan, 5.400 billion yuan, and 6.623 billion yuan, with corresponding EPS of 3.60, 4.48, and 5.49 yuan [6].