DEEJ(SZ:000423) Xin Lang Cai Jing·2025-10-26 12:32Core Viewpoint - The company's performance for the first three quarters of 2025 meets expectations, showing steady growth in revenue and profit, alongside strategic overseas expansion efforts [1][2][3]. Financial Performance - For 1-3Q25, the company reported revenue of 4.766 billion, a year-on-year increase of 4.41%, and a net profit attributable to shareholders of 1.274 billion, up 10.53% year-on-year [1]. - In 3Q25, revenue reached 1.716 billion, reflecting an 8.50% year-on-year growth, while net profit attributable to shareholders was 456 million, increasing by 10.27% year-on-year [2]. - The gross margin for 1-3Q25 was 73.7%, up 3.3 percentage points year-on-year, and the net profit margin was 26.7%, an increase of 1.5 percentage points year-on-year [2]. Cost and Cash Flow Management - The sales expense ratio for 1-3Q25 was 35.2%, down 0.7 percentage points year-on-year, attributed to improved scale effects; the management expense ratio remained stable at 6.1%, while the R&D expense ratio increased by 1.1 percentage points to 3.0% [2]. - Operating cash flow was relatively stable, with net cash inflow from operating activities at 1.31 billion, a decrease of 8.37% year-on-year, while net cash flow from investment activities surged by 181.91% to 813 million, mainly due to increased recovery of maturing financial products [2]. Strategic Initiatives - The company is actively expanding its overseas market presence, having acquired 100% of China Resources Pharmaceutical Trading (Hong Kong) Co., Ltd. in July 2025, aiming to promote traditional Chinese medicine culture abroad [3]. - The strategic focus is on "rooting in Hong Kong and targeting Southeast Asia," enhancing the dual-driven development approach of "going out" and "bringing in" [3]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 remain unchanged at 1.79 billion and 2.06 billion, respectively [4]. - The current stock price corresponds to a price-to-earnings ratio of 17.2 times for 2025 and 15.0 times for 2026, with a target price of 73.605, indicating a potential upside of 53.8% from the current price [4].