Investment Rating - The report maintains a "Buy" rating for the company, indicating that the stock is expected to outperform the market in the near term [1][3]. Core Insights - The company demonstrated a significant adjusted profit growth of 73% year-on-year in the first half of 2025, reinforcing its leading position in the market and highlighting that its market value remains undervalued [1][3]. - The target price is set at 69.11 HKD, representing a 22% upside from the current price of 56.90 HKD [3]. Financial Performance Summary - **Revenue and Profit Growth**: - Total revenue for 2025 is projected to reach 1,522 million USD, reflecting a year-on-year growth of 26.5% [2]. - Net profit is expected to be 161 million USD in 2025, with a growth rate of 32.6% [2]. - **Earnings Per Share (EPS)**: - EPS is forecasted to increase from 0.36 USD in 2024 to 0.44 USD in 2025, with a corresponding decrease in the price-to-earnings (P/E) ratio from 21.9 to 16.5 [2][3]. - **Production and Delivery**: - The company delivered 350 aircraft in the first half of 2025, a 22% increase compared to the same period in 2024 [6][7]. - The average selling price for the SR2X aircraft increased by 9.6% year-on-year, reaching 1.14 million USD [6][7]. Market Position and Strategy - The company is recognized as a leader in the general aviation aircraft manufacturing sector, particularly in the private jet market, focusing on safety and convenience for consumers [6]. - The patented whole-aircraft parachute system has saved over 250 lives since its introduction, enhancing the company's safety reputation [6]. - The introduction of an emergency automatic landing system in all delivered aircraft models since May 2025 further strengthens its safety features [6]. Valuation Perspective - The company is positioned as a high-end manufacturer with luxury consumer product attributes, suggesting potential for valuation improvement compared to peers in the aviation manufacturing sector [6]. - The report suggests that the market may adjust to a valuation of over 20 times the expected earnings for 2025, indicating significant upside potential [6].