Acrel(SZ:300286) HTSC·2025-10-23 02:14Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 30.80 [1][5]. Core Views - The company has shown significant improvement in profitability, with a year-on-year increase in net profit of 21.31% for the first three quarters of 2025, reaching RMB 1.92 billion [2][5]. - The growth in revenue is expected to accelerate due to policy support and the increasing demand for energy efficiency management [4]. Summary by Sections Financial Performance - For Q1-Q3 2025, the company achieved revenue of RMB 837 million, a year-on-year increase of 2.59%, and a net profit of RMB 192 million, up 21.31% [1][2]. - The net profit margin for the first three quarters of 2025 was 22.96%, reflecting a year-on-year increase of 3.55 percentage points [2]. Cost Management - The gross profit margin improved to 47.73%, an increase of 1.49 percentage points year-on-year, primarily due to the higher sales proportion of energy efficiency management software products [2]. - The company has optimized its expense ratios, with sales, management, and R&D expense ratios at 11.57%, 6.24%, and 9.46%, respectively [2]. Share Buyback and Strategic Initiatives - The company announced a share buyback plan using RMB 80 million to 150 million of its own funds, demonstrating confidence in its operations and aiming to enhance team motivation [3]. - The strategic focus on EMS 3.0 products aims to integrate management across various energy sectors, showcasing the company's technological strength and competitive advantage [3]. Market Outlook - The company is positioned for growth through a dual domestic and international strategy, with domestic demand expected to rise due to supportive policies and increased brand recognition overseas [4]. - Upcoming policies from the National Development and Reform Commission are anticipated to boost energy efficiency management demand [4]. Earnings Forecast and Valuation - Revenue forecasts for 2025-2027 have been adjusted downwards to RMB 1.177 billion, RMB 1.440 billion, and RMB 1.833 billion, respectively, reflecting a decrease of 5.99%, 6.31%, and 6.67% [5]. - Corresponding net profit estimates have also been revised to RMB 280 million, RMB 351 million, and RMB 446 million for the same period [5].