Core Viewpoint - Intron's revenue growth of 5% YoY in 1H25 was in line with estimates, but net profit dropped 49% YoY due to pricing pressure from downstream customers [1][2][3] Financial Performance - 1H25 revenue increased by 5% YoY, while net profit decreased by 49% YoY [1] - Gross profit margin (GPM) fell to 13.5%, down from 16.9% in 1H24, reflecting margin pressure amid price wars among OEMs [1][2] - R&D expenses remained high at 7.4% of revenue, with order demand increasing by over 30% YoY [1] Segment Performance - Safety, powertrain, and cloud revenue grew by 27%, 15%, and 135% YoY respectively [1] - New energy, body control, and service segments saw declines of -1%, -26%, and -13% YoY respectively [1][2] Future Outlook - Intron is optimistic about future growth, highlighting progress in intelligent driving with the new MADC4.0 domain controller and robotics with the GRC1.0 high-performance controller [1][3] - The company secured 112 new mass production projects in 1H25, with 10 projects for overseas customers, indicating success in its globalization strategy [3] - Management expects gradual margin recovery in 2H25 due to the implementation of "anti-involution" policies [3] Adjustments to Forecasts - FY25-27 earnings forecasts have been lowered, and the target price has been trimmed to HK$2.11 based on a rollover to 9x FY26E P/E [1][3]