Ge Long Hui·2025-11-07 09:12Core Insights - The report from Huazhong Securities indicates that Wolong Cable achieved a net profit attributable to shareholders of 822 million yuan in the first three quarters of 2025, representing a year-on-year increase of 25.45% [1] - In Q3 2025, the company reported a net profit of 264 million yuan, which is an 11.92% increase year-on-year but a 14.27% decrease quarter-on-quarter [1] - The company continues to see robust growth in high-speed copper cable production, contributing to steady revenue growth [1] Financial Performance - For the first three quarters of 2025, the company maintained a trend of "stable yet decreasing" expenses, with sales, management, and R&D expense ratios at 4.67%, 3.80%, and 5.35% respectively [1] - Both sales and management expense ratios decreased year-on-year, while the R&D expense ratio remained stable with a slight increase [1] - The effective cost control reflects the company's ability to realize economies of scale [1] Capital Expenditure and Inventory - At the end of the reporting period, the company's construction in progress reached 358 million yuan, a significant increase of 54.02% compared to the beginning of the period, primarily due to increased machinery and equipment investments for expanding communication cable production [1] - Inventory grew by 31.64% to 1.139 billion yuan compared to the beginning of the period, mainly to prepare for increased raw material and product stock in response to revenue growth [1] Strategic Outlook - The balance sheet indicates the company's proactive positioning for future growth in the high-speed copper cable business [1] - The report maintains a "buy" rating for the company's stock, suggesting positive investor sentiment regarding its future performance [1]