Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 30.24 CNY [2][8]. Core Insights - The company achieved a revenue of 47.425 billion CNY in the first half of 2025, representing a year-on-year growth of 24.96%. However, the total profit decreased by 25.56% to 1.401 billion CNY, while the net profit attributable to shareholders increased by 4.05% to 1.041 billion CNY. The non-recurring net profit saw a significant increase of 25.10% to 1.118 billion CNY [2][4]. - The company's growth is driven by dual engines: government and enterprise sectors alongside international expansion. The subsidiary, Xinhua San, reported a revenue of 36.404 billion CNY, up 37.75% year-on-year, with net profit reaching 1.851 billion CNY. The domestic government enterprise revenue surged by 53.55% to 31.035 billion CNY, while international revenue grew by 60.25% to 1.919 billion CNY [2][8]. - The company is focusing on AI technology integration across its product offerings, enhancing capabilities in computing clusters, network switching, storage, and security. Notable advancements include the launch of the S12500AI series core switch and the DeepSeek model machine, which are being applied in various industries [2][8]. Financial Summary - The projected total revenue for 2025-2027 is estimated at 93.346 billion CNY, 104.282 billion CNY, and 115.669 billion CNY, with corresponding growth rates of 18.1%, 11.7%, and 10.9% respectively. The net profit attributable to shareholders is forecasted to be 2.060 billion CNY, 1.543 billion CNY, and 1.803 billion CNY for the same period, with growth rates of 31.0%, -25.1%, and 16.9% respectively [4][8]. - The company’s financial ratios indicate a projected PE ratio of 42 for 2025, with a target price of approximately 30.24 CNY based on comparable company valuations and historical levels [4][8].