Core Insights - The company reported a revenue of 2.935 billion yuan for the first half of 2025, a year-on-year increase of 0.47%, but the net profit attributable to shareholders decreased by 77.49% to 87 million yuan [1][2] - The decline in profit was attributed to extended customer acceptance cycles in the defense sector, delayed revenue recognition, and rising gold prices [2] Revenue Breakdown - Revenue from connectors and integrated interconnection products increased by 9.96% to 2.065 billion yuan, serving as the main growth driver [3] - Revenue from motors and control components decreased by 12.47% to 660 million yuan, while relays and optical communication devices also saw declines of 27.68% and 26.50%, respectively [3] Strategic Initiatives - The company is implementing a "2+N" industrial strategy focusing on major interconnection, large motors, and specialized new technologies, with 15 significant industrialization projects to enhance collaboration across the supply chain [3] - The company aims to improve delivery capabilities in the defense sector and has seen a significant increase in orders, although revenue recognition has not met expectations due to extended acceptance cycles [3] Profitability and Cost Management - The overall gross margin for the first half of 2025 was 31.94%, a decrease of 15.58 percentage points year-on-year, with the second quarter gross margin at 32.45% [4] - The gross margin for connectors and integrated interconnection products was 28.41%, down 19.32 percentage points, primarily due to rising prices of precious metals and changes in product structure [4] Future Outlook - The company forecasts net profits attributable to shareholders for 2025-2027 to be 596 million, 988 million, and 1.276 billion yuan, representing year-on-year growth rates of 72%, 66%, and 29%, respectively [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Viewpoints - The company's performance has been impacted by extended acceptance cycles from defense sector clients, delayed revenue recognition, capacity expansion delays, and rising gold prices, leading to a decline in overall performance [2][10]. - In the first half of 2025, the company achieved revenue of 2.935 billion yuan, a year-on-year increase of 0.47%, but the net profit attributable to the parent company decreased by 77.49% to 87 million yuan [4][10]. - The company has implemented a "2+N" industrial strategy focusing on major interconnection, large motors, and specialized new technologies, with 15 significant industrialization projects driving synergy across the connector-motor-optical module chain [10]. Summary by Sections Financial Performance - In 25H1, the company reported a revenue of 2.935 billion yuan, with a net profit of 87 million yuan, and a non-recurring net profit of 73 million yuan, reflecting a significant decline compared to the previous year [4][10]. - The second quarter of 2025 saw a revenue of 1.469 billion yuan, a year-on-year increase of 12.33%, but the net profit decreased by 74.86% [4][10]. Business Segments - Revenue from connectors and integrated interconnection products grew by 9.96% to 2.065 billion yuan, while revenue from motors and control components fell by 12.47% to 660 million yuan [10]. - The company faced challenges in the consumer goods sector, with revenue from relays and optical communication devices declining by 27.68% and 26.50%, respectively [10]. Margin and Cost Management - The overall gross margin for the first half of 2025 was 31.94%, down 15.58 percentage points year-on-year, with the second quarter gross margin at 32.45%, showing a slight improvement [10]. - The gross margin for connectors and integrated interconnection products was 28.41%, a decrease of 19.32 percentage points, primarily due to rising prices of precious metal raw materials [10]. Future Outlook - The company forecasts net profits attributable to the parent company for 2025-2027 to be 596 million, 988 million, and 1.276 billion yuan, representing year-on-year growth rates of 72%, 66%, and 29%, respectively [10].