Core Viewpoint - The company reported strong performance for the first half of 2025, with revenue of $1.36 billion, a year-on-year increase of 132.2%, and a net profit of $67.4 million, up 320.21%, exceeding market expectations [2][3]. Financial Performance - In 25H1, the company achieved a revenue of $1.36 billion, reflecting a year-on-year growth of 132.2% and a net profit of $67.4 million, which is a 320.21% increase compared to the previous year [2]. - The gross margin stood at 11.47%, down 0.82 percentage points year-on-year, while the net margin was 4.93%, up 2.20 percentage points year-on-year [2]. - The significant revenue growth was attributed to the ramp-up of rear camera business, with the company capturing over 30% market share in new iPhone ultra-wide and periscope lenses [2]. Future Growth Drivers - The company is expected to benefit from innovations in ultra-wide and periscope optics for the upcoming iPhone 17, which will drive further revenue growth in 25H2 [3]. - The optical upgrades in Apple products, including wearables and smart home devices, are anticipated to support a new round of high growth for the company [3]. - The market for Apple camera modules is projected to exceed $20 billion, with the company actively participating in the development of new optical innovations for TWS, foldable phones, and smart glasses [3]. Strategic Initiatives - The company is actively expanding into AR/VR and robotics, leveraging its expertise in optical components and high-precision sensing products [3]. - In AR/VR, the company is involved in Apple's innovations, focusing on core optical components like MicroLED display technology [3]. - In the robotics sector, the company has formed partnerships with leading domestic clients to develop high-precision optical sensing products [3].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2]. Core Views - The company reported a revenue of 1.36 billion USD for H1 2025, representing a year-on-year increase of 132.2%, and a net profit of 67.4 million USD, up 320.21% year-on-year, exceeding market expectations [1][5]. - The growth in revenue is primarily driven by the ramp-up of rear camera business, with the company capturing over 30% market share in new iPhone models [5]. - Future growth is anticipated from new optical innovations in Apple products, including the iPhone 17, which is expected to further enhance the company's market share and revenue [5]. - The company is also actively expanding into AR/VR and robotics, which opens up long-term growth opportunities [5]. Financial Data and Valuation - The projected total revenue for the company is expected to grow from 3.815 billion USD in 2025 to 7.038 billion USD by 2027, with corresponding net profits increasing from 200 million USD to 365 million USD [1][5]. - The company's PE ratio is projected to decrease from 17.6 in 2025 to 9.6 in 2027, indicating a potential undervaluation compared to peers in the Hong Kong and A-share markets [5][16]. - The company’s return on equity (ROE) is expected to rise from 23.0% in 2024 to 30.6% by 2027, reflecting improved profitability [16]. Performance Metrics - The company achieved a gross margin of 11.47% in H1 2025, with a net margin of 4.93%, showing stable profitability despite seasonal fluctuations [5]. - The asset-liability ratio is projected to increase from 63.7% in 2024 to 67.5% in 2025, indicating a rising leverage position [16]. - The company’s cash flow from operating activities is expected to improve significantly, reaching 179 million USD in 2025 [13].