Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a target price of 14.26 CNY based on a 22x PE for 2026 [6][10][16]. Core Insights - The company has two main business segments: clean environmental engineering and high-voltage porcelain insulators, with a diversified portfolio including precision bearings and grinding tools. The clean environmental sector is supported by subsidiaries that provide solutions for high-end cleanroom systems and gas monitoring systems, while the porcelain insulator segment benefits from significant investments in China's ultra-high voltage power projects [2][4][12]. - The company reported a revenue of 2.079 billion CNY in H1 2025, a year-on-year decrease of 7.99%, but net profit increased by 11.15% to 161 million CNY. The cash flow from operating activities saw a significant increase of 131.62% [1][4]. Summary by Sections Financial Performance - In H1 2025, the high-voltage porcelain insulator business generated 513 million CNY in revenue, a 42.65% increase, while the clean equipment and engineering business saw a revenue decline of 23.49% to 983 million CNY. The precision bearing segment reported a slight decrease of 0.34% in revenue to 375 million CNY [4][10]. Business Segments - The clean environmental engineering segment is primarily driven by Jiangsu Sujing and Shanghai Beifen, focusing on high-end cleanroom systems and gas monitoring systems, respectively. The porcelain insulator segment, led by Suzhou Electric Porcelain, has over 80 years of experience and serves the power and rail transit sectors [2][3]. - The precision bearing segment, represented by Suzhou Bearing, is positioned to benefit from the acceleration of domestic manufacturing in high-end robotics and automotive systems [3][12]. Growth Projections - Revenue projections for 2025-2027 are 4.601 billion CNY, 5.041 billion CNY, and 5.495 billion CNY, with corresponding net profits of 272 million CNY, 314 million CNY, and 355 million CNY, reflecting growth rates of 8.3%, 15.7%, and 12.8% respectively [10][12][14]. - The clean equipment and engineering business is expected to generate revenues of 2.364 billion CNY, 2.483 billion CNY, and 2.557 billion CNY from 2025 to 2027, while the high-voltage porcelain insulator business is projected to reach 985 million CNY, 1.231 billion CNY, and 1.539 billion CNY in the same period [12][13]. Market Expansion - The company is expanding its overseas business, with Jiangsu Sujing's foreign trade amounting to over 210 million CNY in 2024, doubling year-on-year. Suzhou Electric Porcelain has also secured export orders exceeding 220 million CNY, particularly targeting the Middle East market [9][10].