Investment Rating - The report maintains a "Buy" rating for the company with a target price of 119.79 CNY, based on a 33x PE ratio for 2026 [3][11][6]. Core Views - The company is expected to benefit from high-end product development and category expansion, which will drive growth [2][10]. - The company achieved record revenue in Q2 2025, with a total revenue of 3.33 billion CNY and a net profit growth of 37% year-on-year [10]. - The S and T series chips are advancing towards high-end markets, with significant sales growth anticipated [10]. - The company is seizing new market opportunities with rapid product launches, particularly in the Wi-Fi and smart home sectors [10]. Financial Summary - Revenue projections for 2025-2027 are 7,637 million CNY, 9,374 million CNY, and 11,294 million CNY, respectively, with year-on-year growth rates of 29%, 23%, and 20% [5]. - Operating profit is expected to grow from 1,194 million CNY in 2025 to 2,038 million CNY in 2027, with growth rates of 40%, 34%, and 27% [5]. - Net profit attributable to the parent company is projected to reach 1,140 million CNY in 2025, 1,530 million CNY in 2026, and 1,944 million CNY in 2027, with growth rates of 39%, 34%, and 27% [5]. - Earnings per share are forecasted to be 2.71 CNY in 2025, 3.63 CNY in 2026, and 4.62 CNY in 2027 [5][11].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Insights - The company reported a revenue of 3.33 billion yuan for H1 2025, representing a year-on-year growth of 10.42%, and a net profit attributable to shareholders of 497 million yuan, up 37.12% year-on-year [1]. - The second quarter of 2025 saw revenue reach 1.80 billion yuan, a 9.94% increase year-on-year and a 17.72% increase quarter-on-quarter, with net profit of 308 million yuan, reflecting a 31.46% year-on-year growth and a 63.91% quarter-on-quarter growth [1][2]. - The company is experiencing strong demand driven by smart technology, with significant growth in both revenue and shipment volumes, particularly in the smart home chip segment, which saw over 50% year-on-year sales growth in Q2 2025 [2][3]. - The company continues to invest heavily in R&D, with 735 million yuan allocated in H1 2025, an increase of 61 million yuan year-on-year, focusing on high-quality development and maintaining a strong competitive edge [2][3]. Financial Performance Summary - The company expects to achieve net profits of 1.06 billion yuan, 1.48 billion yuan, and 1.84 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 31, 22, and 18 [4][5]. - Revenue projections for 2025, 2026, and 2027 are 7.44 billion yuan, 9.09 billion yuan, and 10.81 billion yuan, with growth rates of 25.6%, 22.1%, and 19.0% respectively [5][10]. - The gross margin for H1 2025 was reported at 36.80%, an increase of 1.43 percentage points year-on-year [2].