Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [4][3]. Core Insights - The company reported a revenue of 6.447 billion yuan for H1 2025, a year-on-year decrease of 5.68%, while the net profit attributable to shareholders increased by 0.96% to 634 million yuan. The gross margin improved to 23.75%, up by 2.85 percentage points [1]. - In Q2 2025, the company achieved a revenue of 4.099 billion yuan, reflecting a year-on-year increase of 1.81%, and a net profit of 426 million yuan, up by 9.12% [1]. - The company is focusing on its core business, maintaining a strong market position and deepening regional engagement, with significant improvements in its product structure and market share [2]. - The company has made significant advancements in direct current transmission technology, with a revenue increase of 211.71% in this segment, reaching 460 million yuan in H1 2025 [2]. - R&D investment reached 263 million yuan in H1 2025, a year-on-year increase of 9.21%, leading to notable innovations in power electronics [2]. Financial Projections - Revenue projections for 2025-2027 are 18.346 billion, 20.560 billion, and 23.189 billion yuan, with corresponding growth rates of 7.4%, 12.1%, and 12.8% [3]. - Net profit attributable to shareholders is expected to be 1.375 billion, 1.676 billion, and 2.129 billion yuan for the same period, with growth rates of 23.1%, 21.9%, and 27.0% respectively [3]. - The projected PE ratios for 2025-2027 are 18X, 14X, and 11X, indicating a favorable valuation trend for the company [3].