WST(SH:688122) Xin Lang Cai Jing·2025-11-10 00:30Core Insights - The company reported a revenue of 3.989 billion in Q1-3 2025, representing a year-over-year increase of 23.3% [1]. - In Q3 2025, the revenue was 1.266 billion, showing a year-over-year growth of 4.23% but a quarter-over-quarter decline of 23.22% [2]. - The net profit attributable to shareholders for Q1-3 2025 was 650 million, with a year-over-year increase of 7.62% [1]. - The net profit for Q3 2025 was 104 million, reflecting a significant year-over-year decrease of 59.44% and a quarter-over-quarter decline of 72.48% [2]. Revenue and Profit Analysis - The revenue growth in Q1-3 2025 was driven by a recovery in demand since the second half of the previous year, although Q3 showed a slowdown due to a high base effect [2]. - The company’s contract liabilities at the end of Q3 stood at 240 million, up 67.97% from the beginning of the period, indicating strong downstream demand [2]. - The company is actively expanding production and inventory to ensure future revenue and performance growth, with construction in progress amounting to 333 million, a 43.39% increase from the start of the period [2]. Profitability and Cost Structure - The gross margin for Q3 2025 was 36.31%, down 0.9 percentage points year-over-year and 4.61 percentage points quarter-over-quarter, indicating stable performance [3]. - The operating expense ratio was 15.8%, up 4.07 percentage points year-over-year and 4.04 percentage points quarter-over-quarter, primarily due to increased R&D expenditures [3]. - R&D expense ratio reached 8.89%, reflecting a year-over-year increase of 4.56 percentage points, driven by ongoing R&D projects and higher material costs [3]. - The company recognized credit impairment losses and asset impairment losses totaling 126 million in Q3, an increase of 100 million from the previous year, impacting profitability [3]. - The net profit margin for Q3 was 10.72%, down 14 percentage points year-over-year and 14.44 percentage points quarter-over-quarter, reflecting short-term volatility in profitability [3]. Strategic Developments - The company plans to establish a joint venture, Hefei Juneng, with several research institutions, investing 16.15 million for a 23.1% stake [4]. - The new venture will focus on developing and industrializing high-performance superconducting wire materials for fusion engineering, enhancing the company's position in the superconducting wire market [4]. - This initiative aims to strengthen relationships with downstream customers and expand applications of both low and high-temperature superconducting materials [4].