Hexing(SH:603556) Xin Lang Cai Jing·2025-11-09 12:34Performance - The company reported a revenue of 3.369 billion yuan for the first three quarters of 2025, a year-on-year decrease of 1.2% [1] - The net profit attributable to shareholders was 732 million yuan, down 7.5% year-on-year, while the net profit excluding non-recurring items was 701 million yuan, a decline of 10.2% [1] - In Q3 2025, the company achieved a revenue of 1.445 billion yuan, an increase of 25.1% year-on-year, and a net profit of 336 million yuan, up 30.2% year-on-year [1] - The gross profit margin for the first three quarters of 2025 was 39.89%, a decrease of 6.08 percentage points year-on-year, while Q3 2025 gross profit margin was 37.67%, down 11.76 percentage points year-on-year [1] Market Outlook - The company is beginning to see a turning point in performance, with significant improvements in revenue and profit in Q3 2025 [1] - Recent bidding results from the State Grid indicate that while prices for electric meters are still declining, new regulations requiring the provision of CPA certificates for 2025 version smart electric meters may lead to increased costs and improved gross margins for the company [1] - The company is focusing on a "global layout and localized operation" strategy to accelerate marketing channel deployment in key countries and new markets, which is expected to enhance operational performance [1] Investment Recommendations - Revenue projections for 2025 to 2027 are estimated at 4.960 billion, 5.454 billion, and 6.050 billion yuan respectively, with net profits of 945 million, 1.081 billion, and 1.245 billion yuan [2] - Corresponding price-to-earnings ratios are projected at 19.1, 16.7, and 14.5 times, maintaining a "buy" rating [2]