Brother Enterprises (SZ:002562) Chang Jiang Shang Bao·2025-09-17 08:40Core Viewpoint - Brother Technology (002562.SZ) experienced a significant stock price increase due to strong performance forecasts for the first three quarters of 2025, with expected net profit growth of 207.32% to 253.42% year-on-year [1] Financial Performance - The company anticipates a net profit of 1 billion to 1.15 billion yuan for the first three quarters of 2025, with a non-recurring net profit forecast of 970 million to 1.12 billion yuan, reflecting year-on-year growth of 291.79% to 352.37% [1] - For Q3 2025, the expected net profit is between 354.59 million and 504.59 million yuan, indicating a year-on-year increase of 92.49% to 173.92% [1] - In the first half of 2025, Brother Technology reported revenue of 1.811 billion yuan, a 3.45% increase year-on-year, and a net profit of 645.41 million yuan, up 357.17% year-on-year [1] Business Drivers - The strong growth is attributed to rising prices of certain vitamin products, increased capacity utilization and sales of the phenol project, and a decrease in costs leading to improved overall gross margins [1] - The company’s strategic shift towards phenol production, following the termination of a natural flavor project, has allowed it to capitalize on the rising vitamin prices [2][3] Market Performance - Following the positive earnings outlook, Brother Technology's stock price reached a limit-up, closing at 7.25 yuan per share, marking a significant recovery from a low of 3.26 yuan per share in April 2025 [1][5] Shareholder Activity - Despite the positive business performance, the actual controller of Brother Technology, Qian Zhida, has been actively reducing his stake, selling approximately 26.87 million shares for about 146 million yuan between July 4 and July 15, 2025, citing personal funding needs [6]