Core Insights - The company is focusing on becoming a source of original technology, undertaking 19 projects, including the development of domestically produced key equipment such as DC measurement devices and standard meters [50][48]. - The company is participating in 8 major projects related to the smart grid for 2025 and 2030, with new business directions in large-scale renewable energy transmission and micro-coordination [50][48]. - Four products, including domestically produced DC control protection equipment, have been included in the National Energy Administration's list of major equipment, supporting the safety and controllability of the power equipment supply chain [50][48]. Power Electronics Sector - The world's first 6.5 kV / 3 kA IGBT soft rectifier valve has successfully been connected to the grid, and the HCC converter valve has won the bid for the Lingbao project [54]. - The static synchronous compensator has won its first bid for the Yan'an project, and a modular PCS-based energy storage solution has been successfully implemented in the Guyana solar-storage project [54]. Protection Automation Sector - The offshore wind power secondary integration business has achieved breakthroughs at the State Power Investment Corporation's Dalian Huayankou [58]. - The first domestically produced wide-area protection and control system has been put into operation at the Kunming Railway Bureau, providing solid support for public safety [58]. Measurement and Testing Sector - The company has made breakthroughs in domestic high-precision analog-to-digital conversion technology, with the domestically produced standard meter now in trial operation at the State Grid Measurement Center [62]. Smart Distribution Sector - A 40.5 kV / 4000 A gas-insulated switch has been successfully put into operation in Ningxia, achieving global firsts in rated current and breaking capacity [65]. - The first domestic 27.5 kV intelligent mobile high-voltage room has been officially put into operation at the Yan'an substation of the Xi'an Railway Bureau [65]. New Business Development - The company has successfully passed acceptance for the first two sets of 300 MVA pulse power supply equipment for the "Torch Project," laying a crucial foundation for the large-scale application of fusion energy [69]. - The integrated management platform for source-network-load-storage has been successfully implemented in the first national data center green electricity direct connection project in Ulanqab, Inner Mongolia [69].

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].