Ge Long Hui·2025-11-04 19:58Core Insights - Longfei Fiber's Q3 revenue reached 3.891 billion yuan, a year-on-year increase of 16.27% and a quarter-on-quarter increase of 11.46%, while net profit attributable to shareholders was 174 million yuan, down 10.89% year-on-year but up 20.75% quarter-on-quarter [1] - The company's core profitability improved, with operating profit for the first three quarters increasing by 63.3% year-on-year to 611 million yuan, and Q3 profit total increasing by 37.23% year-on-year, driven by revenue growth and improved gross margin [1] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 10.275 billion yuan, a year-on-year increase of 18.18%, and net profit attributable to shareholders of 470 million yuan, down 18.02% year-on-year [1] - The comprehensive gross margin for the first three quarters was 28.83%, an increase of 1.01 percentage points year-on-year, attributed to the higher proportion of high-value-added products such as G.654.E and multi-mode fibers [2] - The net profit margin was 4.57%, a decrease of 2.02 percentage points year-on-year, mainly due to a significant reduction in non-operating income and increased tax expenses [2] Growth Drivers - The demand for high-end products driven by AI computing needs is strong, despite short-term pressure on traditional fiber demand from the telecom sector [1] - The G.654.E fiber, preferred for long-distance backbone network upgrades, has gained significant market share in recent group-level procurement by China Telecom [1] - The company is leading in the research and industrialization of hollow-core fibers, and its subsidiary's business in MPO, AOC, and high-speed copper cables has become a strong growth point, benefiting from the construction of AI data centers in North America [1] Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits attributable to shareholders of 865 million yuan, 1.621 billion yuan, and 2.392 billion yuan for 2025-2027, with year-on-year growth rates of 27.96%, 87.48%, and 47.51% respectively [2] - The target price for A-shares is set at 100.55 yuan, reflecting a PE ratio of 47x for 2026, while the target price for H-shares is 53.38 HKD, corresponding to a PE ratio of 23x for 2026 [2]