ORIENTAL YUHONG(SZ:002271) Xin Lang Cai Jing·2025-10-30 06:41Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025, but showed a positive growth trend in Q3, indicating a potential operational turning point despite ongoing industry challenges [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 20.601 billion, a year-on-year decrease of 5.06%, and a net profit attributable to shareholders of 810 million, down 36.61% [1]. - In Q3 alone, the company recorded revenue of 7.032 billion, representing an 8.51% year-on-year increase, while the net profit attributable to shareholders was 245 million, a decline of 26.58% [1]. - The company's gross margin for Q3 was 24.80%, down 4.12 percentage points year-on-year, primarily due to intense competition in a weak demand environment [2]. Cost Management and Cash Flow - The company maintained good control over its expense ratio, which was 16.61% for the first three quarters, a decrease of 1.96 percentage points year-on-year [2]. - The operating cash flow for the first three quarters was 416 million, an increase of 909 million year-on-year [2]. Growth Outlook - The company is expected to experience a turning point in operations, with supply and demand gradually balancing in the industry due to significant supply reductions [2]. - The main product prices are anticipated to have bottomed out, with a potential for moderate recovery in prices, which could enhance profitability [2]. Earnings Forecast - Revenue projections for 2025 and 2026 are 26.57 billion and 27.18 billion, reflecting year-on-year changes of -5.3% and +2.3% respectively [3]. - Expected net profits for 2025 and 2026 are 1.07 billion and 1.69 billion, with significant year-on-year increases of 886.6% and 58.3% [3].