Wuxi Zhenhua(SH:605319) Xin Lang Cai Jing·2025-11-01 02:37Core Viewpoint - The company reported strong financial performance for the first three quarters of 2025, with revenue and net profit showing significant year-on-year growth, driven by robust sales from traditional clients and new partnerships [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.996 billion yuan, a year-on-year increase of 15.4% [1] - The net profit attributable to shareholders reached 318 million yuan, reflecting a year-on-year growth of 27.2% [1] - In Q3 2025, revenue was 709 million yuan, up 15.7% year-on-year and 3.2% quarter-on-quarter [1] - The net profit for Q3 was 117 million yuan, showing a year-on-year increase of 27.2% and a quarter-on-quarter increase of 9.7% [1] Customer Performance - Sales from traditional clients, particularly the SAIC group, showed strong growth, with SAIC passenger vehicles and SAIC General Motors achieving sales of 228,300 and 135,600 units, respectively, representing year-on-year increases of 55.9% and 156.4% [1] - New energy vehicle sales from Li Auto declined significantly, with L6/L7 models seeing a nearly 50% year-on-year drop, while Tesla's sales in China showed a quarter-on-quarter recovery [1] - Xiaomi continued its strong growth trajectory, with Q3 sales reaching 108,800 units, a year-on-year increase of 173.4% and a quarter-on-quarter increase of 32.6% [1] Margin and Cost Analysis - The company's gross margin for Q3 was 27.4%, an increase of 1.7 percentage points year-on-year, although it decreased by 2.5 percentage points quarter-on-quarter [2] - The expense ratio for Q3 was 8.1%, a slight increase of 0.3 percentage points year-on-year and 0.6 percentage points quarter-on-quarter [2] - The net profit margin for Q3 was 16.5%, up 1.5 percentage points year-on-year and 1.0 percentage point quarter-on-quarter [2] Business Expansion - The company’s subsidiary, Wuxi Kaixiang, is focusing on precision plating and is currently the only qualified supplier for a major client in China, with plans to expand into power semiconductor components [2] - The precision plating business achieved a gross margin of 77.4% in the first half of 2025, indicating potential for significant future growth [3] Future Projections - The company is projected to achieve revenues of 2.99 billion, 4.00 billion, and 4.58 billion yuan for 2025 to 2027, with year-on-year growth rates of 18.0%, 32.9%, and 15.4% respectively [3] - Net profit forecasts for the same period are 480 million, 610 million, and 710 million yuan, with year-on-year growth rates of 28.1%, 26.1%, and 15.9% respectively [3]