Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company reported a revenue of 2.334 billion yuan in the first half of 2025, representing a year-on-year growth of 16.12%, and a net profit attributable to shareholders of 246 million yuan, up 4.11% year-on-year [1]. - The company's profitability is showing signs of recovery, with a gross margin of 31.63% in Q2 2025, a slight year-on-year decrease of 0.52 percentage points, but a quarter-on-quarter increase of 0.07 percentage points [2]. - The company is making significant strides in the renewable energy sector, launching new products and expanding its market presence, particularly in overseas markets [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved an operating income of 1.245 billion yuan, a year-on-year increase of 16.64%, while the net profit attributable to shareholders decreased by 2.61% to 143 million yuan due to government subsidy differences [1]. - The company’s R&D investment reached 154 million yuan in the first half of 2025, accounting for 6.58% of sales revenue, reflecting a year-on-year growth of 9.42% [2]. Product Development - The company has made breakthroughs in renewable energy products, including the launch of a compact 2P framework isolation switch and a series of high-voltage products exceeding 2000V, which are UL certified [3]. - The company's DC contactor products are positioned in the mid-to-high-end market, with applications in energy storage and electric vehicle charging [3]. Future Projections - The company is expected to generate revenues of 4.792 billion yuan, 6.293 billion yuan, and 8.395 billion yuan for the years 2025, 2026, and 2027, respectively, with growth rates of 13.1%, 31.3%, and 33.4% [4][5]. - The projected net profit attributable to shareholders for the same years is 484 million yuan, 634 million yuan, and 875 million yuan, with growth rates of 55.1%, 30.9%, and 38.1% [4][5].

Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.334 billion, a year-on-year increase of 16.12% [1] - The net profit attributable to shareholders was 246 million, reflecting a year-on-year growth of 4.11% [1] - The net cash flow from operating activities reached 171 million, marking a significant year-on-year increase of 37.38% [1] Product Development - The company has made significant advancements in the renewable energy sector, launching products such as 2P small volume, 2000V+, and UL certified products [1] - The company is focused on creating high-performance framework isolation switches and molded case circuit breakers, achieving products that exceed 2000V [1] - The company is actively expanding its presence in the overseas renewable energy market with UL certified products [1] Smart Distribution Products - The company launched the SEA smart distribution cabinet during the reporting period, targeting various sectors including government, healthcare, small industrial buildings, commercial buildings, and infrastructure [1] - The SEA cabinet provides integrated low-voltage distribution solutions aimed at enhancing safety and efficiency for users [1] Smart Living Products - In 2025, the company introduced a 6-inch smart central control screen series, which has gained industry recognition due to its multifunctionality and high stability [2] - This product series has successfully been implemented in multiple regional real estate projects, providing bulk supply to leading real estate companies [2] Market Position - The company is recognized as a leading player in the high-end market of the domestic low-voltage electrical industry [2] - The company adheres to a customer-centric and market-oriented development philosophy, staying attuned to market dynamics [2]