Grace(SH:603256) Xin Lang Cai Jing·2025-11-08 00:33Core Viewpoint - The company reported significant growth in revenue and net profit for the first three quarters of 2025, driven by improved demand and the introduction of high-end products [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 852 million yuan, a year-on-year increase of 37.76%, and a net profit attributable to shareholders of 139 million yuan, a remarkable increase of 1696.45% [1]. - In Q3 2025, revenue reached 302 million yuan, up 43.10% year-on-year, while net profit was 51 million yuan, reflecting a year-on-year increase of 644.41% [1]. Market Trends - The PCB electronic industry experienced rapid growth in the first half of 2025, with a notable improvement in supply and demand dynamics [1]. - The demand for high-end products is increasing, with a higher proportion of high-density interconnect (HDI) applications and advancements in CCL material design towards high-performance, low dielectric constant, and low thermal expansion coefficient materials [1]. Product Development - The company has started to introduce high-end products, leading to an improved product structure and overall price recovery in electronic glass fiber and cloth [1]. - In the first nine months of 2025, the company sold 163 million meters of electronic cloth at an average price of 4.97 yuan/meter, a year-on-year increase of 33.6%, with price increases being the primary driver of revenue growth [1]. Expense Management - The company reported an improvement in expense ratios for sales, management, R&D, and financial costs, with a total expense ratio of 12.48%, down 0.67 percentage points year-on-year, attributed to increased revenue and scale effects [2]. Future Projects - The company plans to issue shares to raise up to 995 million yuan, primarily for the construction of a high-performance glass fiber production line, expected to produce 1,254 tons of high-performance electronic yarn annually [2]. - The project is anticipated to enhance raw material quality and capacity, aligning with new demands in the AI era, with a post-tax internal rate of return (IRR) of 14.4% and a static payback period of 8.26 years [2]. Investment Outlook - The company is projected to achieve net profits of 191 million yuan, 269 million yuan, and 348 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 153.07x, 108.37x, and 83.88x [3].