Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a strong performance in its 2025 half-year results, with revenue of 991 million, a year-on-year increase of 8.09%, and a net profit attributable to shareholders of 117 million, up 14.18% [5][8] - The company's main business segments showed comprehensive growth, particularly in the aerospace sector and integrated circuit testing, with significant revenue increases in these areas [8] - The report anticipates a recovery in profit margins due to improved demand and a more favorable acceptance rhythm, suggesting a potential turning point in profitability [8] Financial Data and Profit Forecast - The company is projected to achieve total revenue of 2,282 million in 2025, with a year-on-year growth rate of 12.7% [7] - The net profit attributable to shareholders is expected to reach 312 million in 2025, reflecting a growth rate of 35.9% [7] - The report outlines a gradual improvement in gross margin, with expectations of a return to an upward trend in profit margins as demand increases and capacity utilization improves [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 991 million yuan for the first half of 2025, representing a year-on-year increase of 8.1%. The net profit attributable to the parent company was 117 million yuan, up 14.2% year-on-year, while the net profit excluding non-recurring items was 114 million yuan, reflecting a 20.7% increase year-on-year. In Q2 alone, revenue reached 561 million yuan, marking an 18.4% year-on-year growth, and the net profit attributable to the parent company was 76 million yuan, up 26.1% year-on-year [2][6] Summary by Sections Revenue and Profitability - In Q2 2025, the company experienced a significant improvement in revenue, with a year-on-year growth rate of 18.4%, compared to a decline of 3.0% in Q1. The revenue breakdown for the first half of the year includes: 1. Environmental testing services: 487 million yuan, up 5.75% year-on-year 2. Testing equipment: 310 million yuan, up 6.32% year-on-year 3. Integrated circuit testing: 155 million yuan, up 21.01% year-on-year [12][12] Margin Analysis - The gross margin for Q2 2025 was 43.0%, a decrease of 4.46 percentage points year-on-year. The net profit margin slightly decreased by 0.27 percentage points year-on-year. The gross margins for different segments were: 1. Environmental testing services: 54.95%, down 0.79 percentage points 2. Testing equipment: 26.56%, down 4.66 percentage points 3. Integrated circuit testing: 36.49%, down 6.38 percentage points [12][12] Cash Flow and Financial Health - The net cash flow from operating activities in Q2 2025 was 199 million yuan, an increase of 44.1% year-on-year, indicating a significant improvement in cash flow [12] Growth Prospects - The company is actively expanding its application fields and continues to invest in capacity. By the end of 2024, the original value of machinery and equipment increased by 26.1% year-on-year. The company is also expanding its laboratory network and enhancing its testing capabilities in various sectors, including military, new energy vehicles, and semiconductors [12][12] Earnings Forecast - The company is expected to benefit from accelerated military testing orders and strong demand in the semiconductor testing sector. Revenue projections for 2025-2027 are 2.263 billion yuan, 2.535 billion yuan, and 2.851 billion yuan, respectively, with net profits of 296 million yuan, 363 million yuan, and 441 million yuan, reflecting year-on-year growth rates of 29.1%, 22.7%, and 21.3% [12][12]

Core Viewpoint - The company reported a slight decline in revenue and net profit for Q1 2025, attributed mainly to a downturn in equipment sales, while other segments like environmental testing services and integrated circuit testing are expected to perform better [1][2]. Revenue Performance - Q1 2025 revenue reached 429 million yuan, a year-on-year decrease of 3.0% [1] - Revenue growth rates for 2024 were +1.0%, -11.0%, -11.9%, and +4.9% for Q1 to Q4, indicating marginal improvement in Q4 [2] - Equipment sales revenue for 2024 was 623 million yuan, down 17.25% year-on-year, due to reduced capital expenditures from downstream third-party testing institutions [2] - Environmental testing services generated 1.01 billion yuan in revenue, a year-on-year increase of 0.64%, with military testing orders gradually recovering [2] - Integrated circuit testing revenue was 288 million yuan, up 12.33% year-on-year, driven by high demand from downstream clients [2] Profitability Analysis - The net profit attributable to the parent company for Q1 2025 was 41 million yuan, also down 3.0% year-on-year [1] - The decline in net profit for 2024 was significant, with year-on-year growth rates of -4.9%, -33.8%, -48.3%, and -11.6% from Q1 to Q4 [3] - Q1 2025 gross margin was 40.44%, a decrease of 2.03 percentage points year-on-year, while net margin improved by 0.32 percentage points to 10.53% [3] Capacity Expansion and Future Outlook - The company has been actively expanding its application fields and increasing capacity, with the original value of machinery and equipment growing by 26.1% year-on-year by the end of 2024 [4] - New laboratories are being established in various locations, including Shenzhen and other cities, to enhance testing capabilities [4] - The company anticipates a rapid release of military testing orders in 2025, along with a favorable semiconductor testing demand, which is expected to drive revenue recovery [4] - Revenue projections for 2025-2027 are 2.32 billion, 2.63 billion, and 2.96 billion yuan, with net profits expected to grow by 27.0%, 23.7%, and 23.7% respectively [4]