Tianqin Equipment(SZ:300922) Xin Lang Cai Jing·2025-11-02 00:45Core Viewpoint - The company reported its Q3 2025 earnings, showing positive revenue growth and meeting market expectations, indicating a strong performance trajectory for the year ahead [1][2]. Revenue and Profitability - For Q1-Q3 2025, the company achieved revenue of 168 million (yoy +11.73%) and a net profit attributable to shareholders of 28 million (yoy +2.25%) [1]. - In Q3 2025, the company recorded revenue of 57 million (yoy +0.77%) and a net profit of 12 million (yoy +1.51%), aligning with market expectations [1][2]. Margin Analysis - The gross margin for Q3 2025 was 37.63%, a decrease of 3.09 percentage points compared to Q3 2024, while the net margin increased to 20.04%, up by 0.14 percentage points [3]. - The decline in gross margin is attributed to changes in product mix, while the increase in net margin is due to stable expense ratios and reduced credit impairment losses [3]. Cost Management and R&D - The company maintained a stable expense ratio, with a total expense ratio of 13.00%, which is an increase of 0.24 percentage points year-on-year, primarily due to a significant rise in R&D expenses [3]. - Management and sales expense ratios decreased, indicating effective cost control measures [3]. Cash Flow and Financial Health - As of Q3 2025, the company had cash and cash equivalents of 26.9 million, maintaining a historically high level, with positive net cash flow from operating activities over the past eight years [4]. - The strong cash position supports future expansion and solidifies the company's industry standing [4]. Market Position and Growth Drivers - The company is a core supplier of integrated protection devices, benefiting from increased demand in the defense sector due to live exercises and the essential nature of protective equipment [4]. - New revenue streams are anticipated from the acquisition of Rongchuang Intelligent, enhancing metal processing capabilities and introducing new protective devices [4]. - The company is also expanding into core module processing for munitions, which presents significant market potential [4]. Earnings Forecast - The earnings forecast for 2025 has been revised down to 8 million (previously 9.6 million) due to increased stock incentive amortization expenses, while forecasts for 2026 and 2027 remain unchanged at 17 million and 28.3 million, respectively [5]. - The current price-to-earnings ratios for 2025, 2026, and 2027 are projected at 49, 23, and 14 times, respectively, reflecting the company's strong market position and growth potential [5].