Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 400 million yuan for the first three quarters of 2025, representing a year-on-year growth of 5.01%. However, the net profit attributable to the parent company was 64 million yuan, a decrease of 11.53% year-on-year. The net profit after deducting non-recurring items was 48 million yuan, down 15.02% year-on-year [2][6] - In Q3 2025, the company achieved a revenue of 106 million yuan, a decline of 15.79% year-on-year, with a net profit of 14.87 million yuan, down 37.56% year-on-year [2][6] - The company is one of the few domestic machine tool manufacturers with a complete industrial chain and is actively expanding its production capacity and integrated layout, which is expected to open up growth opportunities [2][6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved total revenue of 400 million yuan, with a year-on-year increase of 5.01%. The net profit attributable to the parent company was 64 million yuan, down 11.53% year-on-year, and the net profit after deducting non-recurring items was 48 million yuan, down 15.02% year-on-year [2][6] - In Q3 2025, the company reported a revenue of 106 million yuan, a decrease of 15.79% year-on-year, and a net profit of 14.87 million yuan, down 37.56% year-on-year [2][6] Market Expansion - The company is steadily advancing its market expansion, with a diversified product structure and downstream applications. In Q3, new orders signed in the domestic market included approximately 63% from aerospace, 14% from machinery, and 12% from energy sectors [13] - The company is developing axial flux motors, with plans to launch a prototype in early 2026, aiming to expand into new fields such as humanoid robots [13] Capacity Expansion - The company is progressing with capacity expansion, with projects aimed at optimizing production layout and increasing market share for leading products. The Dalian plant's production lines are set to start trial operations in 2025, and the company has moved into a new plant in Yinchuan [13]

Core Viewpoint - Kede CNC experienced a decline of 1.71% on November 14, with a trading volume of 80.67 million yuan, indicating a potential shift in investor sentiment and market dynamics [1]. Financing Summary - On November 14, Kede CNC had a financing buy-in amount of 11.78 million yuan, while the financing repayment was 15.95 million yuan, resulting in a net financing buy of -4.18 million yuan [1]. - As of November 14, the total financing and securities lending balance for Kede CNC was 409 million yuan, which accounts for 5.17% of its circulating market value, indicating a high level of financing activity compared to the past year [1]. - The company had no securities lending repayment or sales on November 14, with a securities lending balance of 51,800 yuan and a remaining quantity of 8,562 shares, also reflecting a high level of activity [1]. Business Performance - As of September 30, Kede CNC reported a total revenue of 400 million yuan for the first nine months of 2025, representing a year-on-year growth of 5.01% [2]. - The net profit attributable to the parent company was 63.93 million yuan, showing a year-on-year decrease of 11.53% [2]. - The company's main business revenue composition includes 53.66% from automated production lines, 40.41% from high-end CNC machine tools, 3.58% from other sales, 2.15% from key functional components, and 0.20% from high-end CNC systems [1]. Shareholder Information - As of September 30, Kede CNC had 13,200 shareholders, an increase of 31.88% from the previous period, while the average circulating shares per person decreased by 24.17% to 10,015 shares [2]. - The cumulative cash distribution since the company's A-share listing amounts to 50.47 million yuan [3]. - Among the top ten circulating shareholders, Huaxia CSI Robotics ETF (562500) ranked as the ninth largest, holding 2.2035 million shares, an increase of 410,500 shares compared to the previous period [3].

Core Viewpoint - The company faces significant challenges in meeting its 2025 stock incentive minimum performance targets, with current revenue and net profit figures falling short of the required growth rates [1] Group 1: Financial Performance - The company needs to achieve a revenue of 6.78 billion by 2025, which requires a 50% increase from 2023 [1] - The net profit target for 2025 is set at 1.43 billion, which is a 40% increase from 2023, adjusted for stock compensation expenses [1] - As of the first three quarters, the company reported a revenue of 4 billion and a net profit of 0.64 billion, indicating a substantial gap from the targets [1] Group 2: Company Confidence and Strategy - The company has stated that it has a sufficient backlog of orders and is accelerating the delivery process to meet market demand [1] - The management expresses confidence in converting strong market demand into sustained growth [1] - The company has no undisclosed information that is required to be disclosed, and it will comply with relevant regulations for any significant updates [1]

Core Viewpoint - The company Kede CNC (688305.SH) has successfully deployed its five-axis machining centers in various regions, indicating strong market demand for its products in the gas turbine component manufacturing sector [1] Group 1: Product Deployment - Kede CNC's five-axis blade processing center, the KTurboM series, has been utilized in batch production [1] - The KMU series, a five-axis turning and milling composite machining center, is also in use for component processing [1] - The KMC series, a five-axis vertical machining center, has been implemented for manufacturing structural components [1] Group 2: Market Reach - The company's products are being used by customers in East China and Northwest regions, showcasing its geographical market penetration [1]

Core Viewpoint - The company is developing axial flux motor products, aiming to launch a prototype by early 2026, which offers advantages over traditional radial flux motors in terms of compact structure, lighter weight, and higher power and torque output for the same volume/weight [1] Group 1: Product Development - The company has initiated the development of axial flux motor products [1] - The planned prototype launch is set for early 2026 [1] Group 2: Product Advantages - Axial flux motors are more compact and lighter compared to traditional radial flux motors [1] - These motors can deliver higher power and torque for the same volume and weight [1] Group 3: Application Potential - The axial flux motors are expected to have significant potential in humanoid robots, low-altitude economy, and new energy vehicles [1] - The company's five-axis machine tools can be directly used for processing precision components such as robot joints and gears [1] - The self-developed motor products are already being applied in the mass production of threaded grinding machines for processing screws and other threaded parts [1]

Core Viewpoint - The company has successfully deployed its five-axis machining centers in various regions for processing components related to gas turbines [1] Group 1 - The five-axis blade processing center KTurboM series is now in mass production [1] - The five-axis turning and milling compound machining center KMU series is also being utilized [1] - The five-axis vertical machining center KMC series has been implemented for component processing [1] Group 2 - The company's products are being used by customers in East China and Northwest regions [1] - The applications include processing gas turbine blades and structural components [1]

Core Viewpoint - The company, Kede CNC, has reported a decline in revenue and net profit for Q3 2025, but has shown significant improvement in operating cash flow, indicating a potential recovery in financial health and market demand [1][2]. Financial Performance - In Q3 2025, Kede CNC achieved revenue of 106 million yuan, a year-on-year decrease of 15.79%, and a net profit of 14.87 million yuan, down 37.56% [1]. - For the first three quarters of 2025, the company reported total revenue of 400 million yuan, a year-on-year increase of 5.01%, while net profit decreased by 11.53% to 63.93 million yuan [1]. - The operating cash flow for the year-to-date period was 218 million yuan, a significant improvement from a negative cash flow of 19.74 million yuan in the same period last year [1]. Market Demand and Orders - Kede CNC has experienced a noticeable increase in orders in Q3 compared to Q2, driven by heightened market interest and increased inquiries from potential clients [2]. - The company has secured new collaborations in sectors such as medical, semiconductor, and low-altitude economy, alongside repeat purchases from existing customers [2]. - The new five-axis blade processing center, KTurboM1500, has attracted significant interest from new clients in the domestic large aircraft sector [2]. Product Development and Innovation - Kede CNC has successfully launched several new products this year, including the five-axis milling and grinding composite processing center, KTFMS200, which has been purchased by clients in the aerospace sector [2]. - The company has established a joint innovation center with AVIC to enhance domestic civil aircraft manufacturing technology and high-end CNC equipment [2]. - The development of axial flux motors is underway, with plans to release a prototype by early 2026, targeting applications in low-altitude economy, new energy vehicles, and humanoid robots [3].

Core Viewpoint - The company emphasizes the importance of market value management and is committed to enhancing operational efficiency and development quality while focusing on shareholder returns [1] Group 1 - The company actively implements dividend policies to benefit all shareholders [1] - The company promotes an equity incentive mechanism to align interests with shareholders [1] - The company strengthens communication with investors to foster transparency and trust [1]

Core Viewpoint - The company, Kede CNC, claims to be the only domestic company fully covering three core technologies: high-end five-axis CNC machine tools, high-end CNC systems, and key functional components, indicating a strong position in the market despite challenges in market share growth [1] Group 1: Company Performance - Kede CNC has achieved a compound annual growth rate (CAGR) of 38.54% in revenue and 46.72% in net profit from 2022 to 2024 [1] - The average price of five-axis CNC machine tools is expected to increase by 47.78% in 2024 compared to 2022 [1] - The company has successfully transitioned from a startup research and development phase to an industrialization development stage [1] Group 2: Market Position and Strategy - The company is actively involved in high-end equipment manufacturing sectors such as aerospace, automotive, energy, and shipbuilding [1] - Kede CNC currently has a sufficient backlog of orders and is accelerating capacity construction [1]

Core Viewpoint - The company is progressing in the construction of a pilot base for large aircraft structural components, which is expected to generate economic and social benefits in the future [2] Group 1: Project Development - The "Large Aircraft Structural Component Process Verification Pilot Base" project signed a cooperation agreement in June 2025 and is currently in the construction phase [2] - The pilot base will utilize dozens of domestic high-end five-axis equipment to tackle key processing technologies for typical aerospace structural components such as titanium and aluminum alloys [2] - A closed-loop mechanism for "application feedback - equipment upgrade" will be established to support the advancement of the project [2] Group 2: Collaboration and Innovation - The company has signed a "Center of Excellence (COE) Co-construction Agreement" with AVIC to establish the first domestic Center of Excellence [2] - This collaboration aims to promote the industrial upgrading and high-quality development of China's civil aircraft manufacturing technology and high-end CNC equipment [2]