GONGNIU(SH:603195) Xin Lang Cai Jing·2025-11-13 08:32Core Viewpoint - Bull Group reported a decline in revenue and net profit for Q3 2025, primarily due to pressures in traditional business, while the new energy sector showed rapid growth potential [1][2]. Financial Performance - Q3 2025 revenue reached 4.03 billion yuan, down 4.4% year-on-year (YoY) [1]. - Net profit attributable to shareholders was 920 million yuan, a decrease of 10.3% YoY [1]. - Deducted non-recurring net profit was 860 million yuan, down 8.3% YoY [1]. - Gross margin for Q3 2025 was 41.7%, a decline of 1.8 percentage points YoY, attributed to the increasing revenue share from lower-margin new energy business [2]. Business Segments - Traditional business faced challenges due to industry conditions, prompting the company to innovate and develop new products to mitigate the impact of low demand in the real estate sector [2]. - The new energy business is in its early development stage and has not yet achieved economies of scale, but it is expected to improve gross margins as it grows [2]. Cash Flow and Expenses - Operating cash flow improved significantly, with a net amount of 1.24 billion yuan, up 90.2% YoY [3]. - Cash received from sales and services was 4.88 billion yuan, an increase of 6.8% YoY [3]. - Cash paid for goods and services was 2.3 billion yuan, down 11.5% YoY [3]. - The increase in operating cash flow was driven by higher advance payments and a reduction in inventory, with contract liabilities at 610 million yuan, up 30.7% YoY, and inventory at 1.17 billion yuan, down 11.6% YoY [3]. Investment Outlook - The company is a leader in the electrical industry with high brand recognition and is actively expanding into emerging growth sectors, which may create a second growth curve [3]. - EPS forecasts for 2025-2027 are projected at 2.2, 2.4, and 2.6 yuan respectively, with corresponding PE ratios of 20, 18, and 17 times [3]. - A target price of 54.6 yuan is set, corresponding to a 23 times PE for 2026, maintaining a "strong buy" rating [3].