ToLand(SZ:300855) Western Securities·2025-10-19 12:00Investment Rating - The investment rating for the company is "Accumulate" [4][10]. Core Views - The company reported a revenue of 859 million yuan for the first three quarters of 2025, a decrease of 20.5% year-on-year, and a net profit attributable to shareholders of 123 million yuan, down 52.2% year-on-year [1][4]. - The decline in performance is attributed to the operational costs during the ramp-up phase of the production lines at its subsidiaries in Shenyang, which led to losses and impacted overall profitability [1]. - The company has significantly increased its inventory to 750 million yuan, up 33.2% quarter-on-quarter, indicating proactive production and delivery strategies [2]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 260 million yuan, a decline of 25.3% year-on-year and 16.8% quarter-on-quarter, with a net profit of 30 million yuan, down 54.5% year-on-year and 40.7% quarter-on-quarter [1][4]. - The operational costs during the ramp-up phase of production lines at subsidiaries have led to a temporary decline in profitability [1]. Inventory and Accounts Payable - As of the end of Q3 2025, the company’s inventory stood at 750 million yuan, reflecting a 33.2% increase quarter-on-quarter, driven by production preparations based on existing orders [2]. - Accounts payable reached 464 million yuan, a significant increase of 174.7% quarter-on-quarter, primarily due to increased material procurement and ongoing construction projects [2]. Profit Forecast - The company is expected to achieve revenues of 1.52 billion yuan, 2.06 billion yuan, and 2.56 billion yuan for 2025, 2026, and 2027 respectively, representing year-on-year growth rates of 20%, 36%, and 24% [2]. - Net profit attributable to shareholders is projected to be 280 million yuan, 420 million yuan, and 530 million yuan for the same years, with corresponding growth rates of 4%, 51%, and 27% [2].