Milkground(SH:600882) Xin Lang Cai Jing·2025-11-03 00:26Core Viewpoint - The company reported strong financial performance for Q1-Q3 2025, with significant year-on-year growth in both revenue and net profit, indicating a positive trend in its operations and profitability [1][2]. Financial Performance - For Q1-Q3 2025, the company achieved revenue of 3.957 billion yuan, a year-on-year increase of 10.09%, and a net profit attributable to shareholders of 176 million yuan, up 106.88% [1]. - In Q3 2025, the company recorded revenue of 1.390 billion yuan, representing a year-on-year growth of 14.22%, and a net profit of 42.97 million yuan, which is a substantial increase of 214.67% [1]. Product Performance - The revenue breakdown for Q3 shows liquid milk, cheese, and dairy product trading revenues of 87.15 million yuan, 1.166 billion yuan, and 130 million yuan, with year-on-year changes of -8.55%, +22.44%, and -7.27% respectively, highlighting the growth in the high-margin cheese segment [2]. - The optimization of the product structure is attributed to the continued growth of the cheese business, which has a higher profit margin [2]. Profitability Metrics - The gross margin for Q3 was 28.18%, an increase of 1.14 percentage points year-on-year, primarily driven by the growth in the cheese segment [2]. - The net profit margin for Q3 reached 3.09%, up 1.97 percentage points year-on-year, reflecting significant improvements in net profit and attributable net profit [2]. Cost Management - In Q3, the company saw a decrease in sales expense ratio by 0.81 percentage points, while the management expense ratio increased by 0.84 percentage points, likely due to stock incentive costs [2]. - The company also reported increases in investment income and other income as a percentage of revenue, attributed to government subsidies [2]. Future Outlook - The company is expected to achieve its annual targets, with a positive revenue and profit trend continuing into the latter part of the year [2]. - The projected EPS for 2025-2027 is 0.43, 0.64, and 0.86 yuan, corresponding to PE ratios of 59X, 40X, and 30X respectively, maintaining a "buy" rating for the company [3].