Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 99.01 RMB [6][4]. Core Views - The company reported a revenue of 371 million RMB in Q1 2025, representing a year-on-year growth of 66%, while the net profit attributable to shareholders was 79 million RMB, a 150% increase year-on-year, although slightly below expectations due to asset impairment losses and fair value changes [1][2]. - The gross margin for Q1 2025 was 42%, an increase of 11 percentage points year-on-year and 3 percentage points quarter-on-quarter, attributed to revenue structure optimization and cost reduction from self-developed products [2]. - The demand outlook for 2025 remains positive, driven by AI computing needs, with the MPO business expected to continue its high growth trend. The CPO sector is anticipated to open new growth opportunities for the company [3]. Summary by Sections Financial Performance - Q1 2025 revenue was 371 million RMB, up 66% year-on-year; net profit was 79 million RMB, up 150% year-on-year [1]. - The comprehensive gross margin was 42%, with a year-on-year increase of 11 percentage points [2]. - The company maintained good expense control, with sales, management, and R&D expense ratios at 1.63%, 7.93%, and 4.47%, respectively [2]. Future Outlook - The company is expected to benefit from the ongoing demand in the AI computing sector, with the MPO business projected to sustain high growth in 2025 [3]. - The CPO industry trend is expected to provide new performance growth points, with promising applications for the company's products [3]. Valuation - The report maintains profit forecasts for 2025-2027 at 450 million RMB, 646 million RMB, and 853 million RMB, respectively [4]. - The target price is set at 99.01 RMB, based on a PE ratio of 50x for 2025, reflecting the company's leading position in the MPO industry [4].