Ge Long Hui A P P·2025-10-23 08:04Core Viewpoint - Dongwu Securities report indicates that Chengde Lolo's net profit attributable to shareholders for the first nine months reached 383 million yuan, a year-on-year decline of 8.47%, although this decline has narrowed compared to the first half of the year [1] Financial Performance - In Q3 2025, the company achieved revenue of 572 million yuan, representing a year-on-year growth of 8.91%, which is better than expected [1] - The profit margin in Q3 has declined due to increased expenses from new product promotions, despite the continuation of cost benefits [1] Cash Flow and Share Buyback - The company maintains high-quality cash flow, and the share buyback is entering a critical phase with expectations for execution [1] Sales Outlook - Based on the semi-annual performance and the reality of a "small year," the company remains cautious about Q4 sales, maintaining a prudent forecast for annual revenue and profit [1] - The company plans to launch new products in 2025 with significant investment in expenses, which partially offsets the benefits from cost reductions [1] - There is optimism for a return to a "big year" in 2026, benefiting from a later Spring Festival [1] Valuation - The current market value corresponds to a PE ratio of 14.8x/13.4x, and with strong support from share buybacks and the transition to a big year at year-end, the rating remains "Buy" [1]