Core Viewpoint - The company reported slightly better-than-expected performance for 1H25, with significant growth in profitability during 2Q25, driven by the specialized cable segment and connection products [1][2] Financial Performance - In 1H25, the company achieved revenue of 972 million yuan, a year-on-year increase of 14.29%, and a net profit attributable to shareholders of 90 million yuan, up 50.30% [1] - For 2Q25, revenue reached 524 million yuan, reflecting an 8.47% year-on-year increase and a 16.84% quarter-on-quarter increase, with a net profit of 57 million yuan, marking a 35.72% year-on-year increase and a 74.94% quarter-on-quarter increase [1] - The gross margin for 1H25 was 16.17%, up 1.34 percentage points, and the net margin was 8.10%, up 1.56 percentage points; in 2Q25, the gross margin was 22.08%, up 4.13 percentage points year-on-year, and the net margin was 10.89%, up 2.16 percentage points year-on-year [1] Segment Performance - The specialized cable segment saw revenue of 175 million yuan in 1H25, a remarkable increase of 154.73%, while connection products generated revenue of 113 million yuan, up 46.80% [1] - The specialized cable segment achieved a gross margin of 50.86%, an increase of 21.46 percentage points, significantly boosting the overall profitability of the company [1] Market Outlook - The company is focusing on high-speed cable components and is benefiting from the ongoing construction of large data centers, which is expected to sustain growth in the market for high-speed DAC/AEC products [1] - The high-speed transmission cables are primarily used in computing centers, with applications supporting single-channel transmission rates of up to 224 Gb/s; the demand for reliable and low-carbon solutions is anticipated to expand the market for these products [1] - The company possesses technological and customer advantages, suggesting a continued increase in market share [1] Investment Recommendations - The company is positioned as a leading player in the high-speed copper cable sector, with solid customer foundations and technological accumulation translating into improved market performance [2] - With ongoing capacity expansion and rising demand for AEC/DAC products in the GPU/ASIC market, the specialized cable and connection product segments are expected to maintain the strong growth seen in 2Q25 [2] - Revenue projections for 2025, 2026, and 2027 are 2.245 billion, 2.926 billion, and 4.013 billion yuan, representing year-on-year growth rates of 22.57%, 30.36%, and 37.14% respectively; net profits are forecasted at 187 million, 321 million, and 509 million yuan, with growth rates of 22.26%, 71.83%, and 58.34% respectively [2]