Investment Rating - The investment rating for Foshan Lighting (000541.SZ) is "Outperform the Market" [7] Core Views - The company's revenue for H1 2025 decreased by 8.3% to 4.39 billion, with a net profit attributable to shareholders down 40.2% to 110 million [2] - The general lighting segment is under pressure due to weak demand in both domestic and international markets, exacerbated by increased competition and tariffs [3] - The automotive lighting segment, however, is showing steady growth with a 9.5% increase in revenue to 910 million in H1 [4] - The company is actively expanding its online and offline channels, with over 1,600 new outlets opened and a 10.8% increase in e-commerce revenue [3] Summary by Sections Financial Performance - H1 2025 revenue was 4.39 billion, down 8.3%, with a net profit of 110 million, down 40.2% [2] - Q2 revenue was 2.24 billion, down 1.2%, with a net profit of 50 million, down 53.7% [2] - The gross margin for H1 decreased by 0.4 percentage points to 18.7% [5] Business Segments - General lighting revenue fell by 9.5% to 1.56 billion in H1, with overseas revenue down 6.8% to 970 million [3] - The automotive lighting segment's revenue decreased by 3.0% to 1.01 billion, but the new projects contributed to a 9.5% increase in the Liowang brand revenue [4] Market Strategy - The company is focusing on expanding into emerging markets and has developed new partnerships in Europe, Africa, the Middle East, and Southeast Asia [3] - The company is also exploring new lighting applications, including marine and sports lighting, and has seen a 46.8% increase in sales for plant lighting [3] Profitability and Valuation - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 300 million, 350 million, and 380 million respectively, with a projected PE ratio of 34, 29, and 27 [5][6] - The gross margin is expected to be impacted by structural changes, with a Q2 gross margin of 17.9%, down 2.3 percentage points year-on-year [5]