Core Viewpoint - Zhejiang Natural's Q3 2025 revenue, net profit attributable to parent, and net profit excluding non-recurring items were 133 million, 37 million, and 8 million yuan respectively, showing year-on-year declines of 30.38%, 40.63%, and 68.23% due to tariff impacts affecting orders from Cambodia [1] Group 1: Q3 Performance Analysis - The decline in Q3 revenue is primarily attributed to tariff impacts leading to pressure on orders from Cambodia [1] - Short-term outlook for Q4 is expected to improve compared to Q3, driven by a turning point in inventory destocking for the main business of outdoor inflatable mattresses and new customer orders contributing to growth [1] Group 2: Medium to Long-term Growth Prospects - In the medium term, water sports products are anticipated to become a new growth point, leveraging the Vietnam base, with expectations of maintaining high growth this year [1] - In the long term, the company demonstrates strong capabilities in R&D and cost control in new materials, with the TPU penetration rate expected to continue increasing [1] - The overseas outdoor equipment market remains in a growth phase, with the company continuing to expand production and significant potential for increasing overseas market share [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is expected to perform better in Q4 compared to Q3, with the main business of inflatable mattresses experiencing a turning point in inventory reduction, alongside new customer orders contributing to growth. However, the business in Cambodia remains under pressure due to tariff impacts [5] - The company has adjusted its revenue and net profit forecasts for 2025-2027 downwards, reflecting a more cautious outlook, but maintains a "Buy" rating based on projected earnings growth [5] Financial Performance Summary - In Q3 2025, the company's revenue, net profit attributable to the parent, and net profit excluding non-recurring items were 133 million, 37 million, and 8 million yuan respectively, showing year-on-year declines of 30.38%, 40.63%, and 68.23% [2] - For the first three quarters of 2025, the company reported revenue of 818 million yuan, a year-on-year increase of 3.48%, and net profit attributable to the parent of 182 million yuan, up 12.06% [2] - The gross margin and net profit margin for Q3 2025 were 28.23% and 27.80%, down 1.07 and 4.80 percentage points year-on-year [3] Inventory and Receivables - As of Q3 2025, the company's inventory was 231 million yuan, an increase of 11.31% year-on-year, with inventory turnover days rising to 130 days [4] - Accounts receivable decreased by 3.24% year-on-year to 158 million yuan, with turnover days increasing to 56 days [4] Future Outlook - Short-term prospects for Q4 are positive, with expectations of double-digit growth in the inflatable mattress segment and continued strong performance in water sports products, supported by the new manufacturing base in Vietnam [5] - Long-term growth is anticipated in the new materials sector, with a focus on TPU penetration and expansion in overseas outdoor equipment markets [5] Earnings Forecast - The company forecasts revenues of 1,155 million, 1,314 million, and 1,476 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 15.2%, 13.8%, and 12.3% [8] - Net profit attributable to the parent is projected to be 213 million, 254 million, and 286 million yuan for the same years, with growth rates of 15.0%, 19.3%, and 12.5% [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - In the first three quarters of 2025, the company achieved a revenue of 820 million yuan, representing a year-on-year increase of 3.5%. The net profit attributable to the parent company was 180 million yuan, up 12.1% year-on-year, while the net profit excluding non-recurring items was 140 million yuan, down 6.2% year-on-year. In Q3 alone, revenue was 130 million yuan, down 30.4% year-on-year, with a net profit of 40 million yuan, down 40.6% year-on-year, and a net profit excluding non-recurring items of 8.435 million yuan, down 68.2% year-on-year [2][4]. Summary by Sections Financial Performance - The company reported total revenue of 820 million yuan for the first three quarters of 2025, with a year-on-year growth of 3.5%. The net profit attributable to the parent company was 180 million yuan, reflecting a year-on-year increase of 12.1%. However, the net profit excluding non-recurring items decreased by 6.2% to 140 million yuan. In Q3, the company faced significant challenges, with revenue dropping to 130 million yuan, a decline of 30.4% year-on-year, and net profit falling to 40 million yuan, down 40.6% year-on-year [2][4]. Market Outlook - Short-term order disruptions are expected due to reduced customer orders influenced by tariffs and weak domestic replenishment. This has led to a decrease in capacity utilization and a decline in gross margin by 1.1 percentage points year-on-year. The sales and management expense ratios increased by 2.4 percentage points and 5.7 percentage points year-on-year, respectively. The net profit margin excluding non-recurring items fell by 7.6 percentage points to 6.4%, indicating significant pressure on financial metrics due to weak order performance [10]. Future Projections - Looking ahead, it is anticipated that new business year clients will continue to place orders, with expectations for better growth in Q4 2025 and H1 2026. In the medium to long term, as tariffs stabilize, orders are expected to gradually recover. The company is also expected to ramp up production capacity and see new business lines, such as insulated bags and water sports products, begin to contribute to revenue. The projected net profits for 2025, 2026, and 2027 are estimated at 210 million yuan, 240 million yuan, and 270 million yuan, respectively, with corresponding valuations of 17X, 15X, and 13X [10].

Market Overview - The entertainment products sector increased by 1.23% on November 3, with Mingyue Lens leading the gains [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Top Performers - Mingyue Lens (301101) closed at 43.94, up 6.39% with a trading volume of 75,400 shares and a transaction value of 324 million yuan [1] - Helen Piano (300329) closed at 18.25, up 5.43% with a trading volume of 120,500 shares and a transaction value of 217 million yuan [1] - Qunxing Toys (002575) closed at 6.40, up 3.39% with a trading volume of 326,400 shares and a transaction value of 207 million yuan [1] Underperformers - Jinling Sports (300651) closed at 22.13, down 5.43% with a trading volume of 151,700 shares [2] - Yuanfei Pets (001222) closed at 23.00, down 4.29% with a trading volume of 56,300 shares [2] - Zhejiang Nature (605080) closed at 24.48, down 1.45% with a trading volume of 20,800 shares [2] Capital Flow - The entertainment products sector experienced a net outflow of 4.75 million yuan from institutional investors, while retail investors saw a net inflow of 3.32 million yuan [2][3] - Major stocks like Guangbo Co. (002103) had a net inflow of 24.48 million yuan from institutional investors, while Mingyue Lens (301101) had a net inflow of 16.28 million yuan [3]

Group 1 - Zhejiang Natural (605080.SH) reported its Q3 2025 results, with 9 institutional investors holding a total of 99.1372 million shares, representing 70.03% of the total share capital [1] - The institutional holding ratio increased by 0.21 percentage points compared to the previous quarter [1] - Two new public funds were disclosed this period, including Huatai-PB Value Selection Mixed and Agricultural Bank of China Research Selection Mixed, while 182 public funds were not disclosed compared to the previous quarter [1] Group 2 - No foreign institutional investors were disclosed this period, with Barclays Bank PLC being the only one not reported in the previous quarter [2]

Core Viewpoint - Zhejiang Natural is a leading outdoor sports goods manufacturer with a strong vertical integration advantage, focusing on inflatable mattresses and outdoor bags, and has shown impressive financial performance in the industry [1][2]. Financial Performance - In Q3 2025, Zhejiang Natural reported revenue of 818 million yuan, ranking 7th in the industry, while the top competitor, Tianyuan Pet, achieved 2.323 billion yuan [2]. - The net profit for the same period was 183 million yuan, leading the industry, with the second-place competitor, Yuanfei Pet, at 158 million yuan [2]. Financial Ratios - The company's debt-to-asset ratio stood at 10.80% in Q3 2025, down from 15.70% year-on-year and significantly lower than the industry average of 30.49% [3]. - The gross profit margin was 34.00%, slightly down from 35.30% year-on-year but still above the industry average of 23.75% [3]. Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 1.60% to 11,000, while the average number of shares held per shareholder increased by 1.62% to 12,700 [5]. - New significant shareholders include Huatai PineBridge Value Selection Mixed Fund and Agricultural Bank Research Selection Mixed Fund, while some previous major shareholders exited [5]. Management Compensation - The chairman and general manager, Xia Yonghui, received a salary of 913,400 yuan in 2024, an increase of 206,400 yuan from 2023 [4]. Future Outlook - Tianfeng Securities projects net profits for 2025-2027 to be 250 million, 330 million, and 410 million yuan, with corresponding P/E ratios of 15, 11, and 9 times, maintaining a "buy" rating [5]. - Zheshang Securities anticipates revenues of 1.27 billion, 1.87 billion, and 2.40 billion yuan for the same period, with net profits of 250 million, 380 million, and 490 million yuan, maintaining a "buy" rating as well [6].

Core Insights - Zhejiang Natural (605080.SH) reported a revenue of 818 million yuan for the first three quarters of 2025, representing a year-on-year growth of 3.48% [1] - The company's net profit attributable to shareholders reached 182 million yuan, marking a year-on-year increase of 12.06% [1] - The non-recurring net profit was 141 million yuan, showing a year-on-year decline of 6.15% [1] - Basic earnings per share stood at 1.30 yuan [1]

Market Overview - The entertainment products sector experienced a decline of 0.33% on October 30, with Zhejiang Zhengte leading the drop [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Stock Performance - Notable gainers included: - Helen Piano (300329) with a closing price of 17.57, up 7.59% and a trading volume of 180,300 shares, totaling 311 million yuan [1] - Source Pet (001222) closed at 24.51, up 2.21% with a trading volume of 66,300 shares, totaling 162 million yuan [1] - Major decliners included: - Zhejiang Zhengte (001238) closed at 49.33, down 3.08% with a trading volume of 8,368 shares, totaling 41.9 million yuan [2] - Huali Technology (301011) closed at 25.65, down 2.88% with a trading volume of 32,400 shares, totaling 83.57 million yuan [2] Capital Flow - The entertainment products sector saw a net outflow of 69.16 million yuan from institutional investors, while retail investors contributed a net inflow of 66.54 million yuan [2] - Specific stock capital flows included: - Morning Light Co. (6688809) had a net inflow of 11.21 million yuan from institutional investors [3] - Source Pet (001222) saw a net inflow of 10.59 million yuan from institutional investors [3] - Zhejiang Zhengte (001238) experienced a net outflow of 0.53 million yuan from institutional investors [3]

Financial Performance - The company's operating revenue for the third quarter was ¥132,547,612.01, a decrease of 30.38% compared to the same period last year[5] - Total profit for the quarter was ¥41,584,447.66, down 39.53% year-over-year[5] - Net profit attributable to shareholders was ¥36,852,395.89, reflecting a decline of 40.63% compared to the previous year[5] - The net profit after deducting non-recurring gains and losses was ¥8,434,567.99, a significant drop of 68.23% year-over-year[5] - The basic and diluted earnings per share were both ¥0.26, down 40.91% from the same period last year[6] - Total operating revenue for the first three quarters of 2025 reached ¥818,027,106.97, an increase of 3.1% compared to ¥790,531,638.81 in the same period of 2024[22] - Net profit for the first three quarters of 2025 was ¥182,807,111.02, representing a 11.0% increase from ¥164,679,701.14 in 2024[23] - Operating profit for the first three quarters of 2025 was ¥209,740,485.25, compared to ¥190,006,340.17 in 2024, marking an increase of 10.4%[22] - Basic and diluted earnings per share for the first three quarters of 2025 were both ¥1.30, an increase from ¥1.16 in 2024[23] Assets and Liabilities - Total assets increased to ¥2,474,218,784.58, representing a growth of 5.28% from the end of the previous year[6] - Total current assets as of September 30, 2025, amounted to approximately RMB 1.5 billion, an increase from RMB 1.4 billion at the end of 2024[16] - Total liabilities include accounts payable of RMB 147.70 million, down from RMB 197.78 million[17] - Non-current assets totaled approximately RMB 973.85 million, up from RMB 941.90 million[17] - The total liabilities decreased to ¥267,233,975.14 in 2025 from ¥310,227,575.04 in 2024, showing a reduction of 13.9%[18] - The total equity attributable to shareholders increased to ¥2,199,685,375.10 in 2025 from ¥2,034,165,708.58 in 2024, reflecting an increase of 8.1%[18] Cash Flow - Cash flow from operating activities for the year-to-date was ¥251,282,261.42, an increase of 39.23%[5] - The net cash flow from operating activities for the first three quarters of 2025 was ¥251,282,261.42, up from ¥180,478,743.03 in 2024, indicating a growth of 39.2%[24] - The company reported a significant increase in investment cash inflow, totaling ¥616,600,396.37 in the first three quarters of 2025, compared to ¥444,017,713.97 in 2024[24] - The net cash flow from investing activities was $52.59 million, a significant improvement from a net outflow of $279.82 million in the previous period[25] - Total cash inflow from financing activities was $89.55 million, down from $323.88 million year-over-year[25] - The net cash flow from financing activities showed a decline of $83.62 million, resulting in a net outflow of $8.25 million compared to a net inflow of $75.37 million previously[25] - The cash and cash equivalents at the end of the period increased to $474.68 million, up from $315.35 million at the end of the previous period[25] - The total cash inflow from investment activities was $623.99 million, compared to $456.45 million in the prior year[25] - Cash outflow for the acquisition of fixed assets and intangible assets was $101.19 million, down from $140.40 million year-over-year[25] - The cash outflow for debt repayment was $50.19 million, a decrease from $228.98 million in the prior year[25] - The impact of exchange rate changes on cash and cash equivalents was a negative $908,028.23, compared to a negative $1.61 million previously[25] Shareholder Information - Total shareholders of common stock at the end of the reporting period reached 11,031[13] - The largest shareholder, Shanghai Yangda Enterprise Management Co., Ltd., holds 75,600,000 shares, accounting for 53.40% of total shares[14] - The company has no significant changes in the top 10 shareholders or their participation in margin trading[14] - There are no significant reminders for investors regarding the company's operational status during the reporting period[15] Market Factors - The decline in revenue and profit was primarily attributed to market demand factors[10][11] Non-Recurring Gains - The company reported non-recurring gains of ¥28,417,827.90 for the period, with government subsidies contributing significantly to this figure[7] Accounting Standards - The company will not apply new accounting standards starting from 2025[26]

Market Overview - The entertainment products sector increased by 0.8% on October 23, with Zhujiang Piano leading the gains [1] - The Shanghai Composite Index closed at 3922.41, up 0.22%, while the Shenzhen Component Index closed at 13025.45, also up 0.22% [1] Top Performers - Zhujiang Piano (002678) closed at 6.19, up 9.95% with a trading volume of 721,500 shares and a transaction value of 443 million [1] - Sanbai Shuo (001300) closed at 15.59, up 3.66% with a trading volume of 79,300 shares and a transaction value of 124 million [1] - Zhejiang Zhengte (001238) closed at 50.51, up 2.98% with a trading volume of 46,626 shares and a transaction value of 33.21 million [1] Underperformers - Qunxing Toys (002575) closed at 6.36, down 3.49% with a trading volume of 450,700 shares and a transaction value of 288 million [2] - Gao Le Co. (002348) closed at 4.15, down 3.04% with a trading volume of 358,800 shares and a transaction value of 149 million [2] - Tianyuan Pet (301335) closed at 30.30, down 1.46% with a trading volume of 22,900 shares and a transaction value of 69.39 million [2] Capital Flow - The entertainment products sector experienced a net outflow of 93.73 million from institutional investors, while retail investors saw a net inflow of 70.65 million [2] - The sector's overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors are actively buying [2] Individual Stock Capital Flow - Source Pet (001222) had a net inflow of 18.69 million from institutional investors, but a net outflow of 9.57 million from speculative funds [3] - Guangbo Co. (002103) saw a net inflow of 18.66 million from institutional investors, but a significant net outflow of 19.70 million from retail investors [3] - Zhejiang Zhengte (001238) had a net inflow of 1.46 million from institutional investors, while speculative funds and retail investors experienced net outflows [3]