Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 1.385 billion in H1 2025, representing a year-over-year increase of 19.64%. The net profit attributable to the parent company was 95 million, up 25.48% year-over-year, while the net profit excluding non-recurring items was 83 million, reflecting a 52.58% increase year-over-year [2][4]. - In Q2 2025, the company achieved a revenue of 874 million, which is a 9.3% year-over-year growth. However, the net profit attributable to the parent company decreased by 11.45% year-over-year to 63 million, while the net profit excluding non-recurring items remained relatively stable with a slight increase of 0.12% year-over-year to 56 million [2][4]. Summary by Sections Financial Performance - In H1 2025, the company's revenue from underwater acoustic electronics was 420 million, showing a year-over-year growth of 30.68%. The special electronic business generated 205 million, down 2.12% year-over-year. The non-defense sector revenue reached 736 million, up 22.07% year-over-year, with significant projects in smart cities, rail transit, and oil and gas [10]. - The gross margin for H1 2025 was 35.32%, a decrease of 1.14 percentage points year-over-year. The gross margin for Q2 2025 was 35.31%, an increase of 1.92 percentage points year-over-year. The net profit margin for H1 2025 was 7.35%, slightly up by 0.04 percentage points year-over-year [10]. Capacity Expansion - The company is accelerating capacity construction to meet the demand for military and civilian marine equipment. As of the end of H1 2025, the contract liabilities amounted to 165 million, a 12.31% increase from the beginning of the period. The balance of construction in progress was 377 million, up 9.29% from the beginning of the period [10]. Profit Forecast and Valuation - The forecasted net profit attributable to the parent company for 2025-2027 is 290 million, 380 million, and 510 million, respectively. The corresponding price-to-earnings ratios are 86, 64, and 48 times. The company holds a strong position in the underwater acoustic electronics sector, and the current valuation is considered attractive [10].