Xiantong Stock(SH:603239) Changjiang Securities·2025-10-24 10:12Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 1.024 billion in the first three quarters of 2025, representing a year-on-year increase of 21.7%. The net profit attributable to shareholders was 152 million, up 17.4%, while the net profit after deducting non-recurring items was 149 million, an increase of 17.1% [2][4]. - In Q3 alone, the company achieved a revenue of 353 million, reflecting a year-on-year growth of 22.98%, with a net profit of 45 million, up 18.12% [4]. - The company is benefiting from a robust customer base, having established relationships with major domestic car manufacturers, and is the only domestic enterprise capable of mass-producing borderless sealing strips, which is expected to enhance market share and profitability [11]. - The company is entering the robotics sector by investing 40 million in Shanghai Haohai Starry Sky Robot Co., aiming to leverage local automotive resources to create a robotics production platform [11]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a gross margin of 28.7%, down 1.7 percentage points year-on-year, while the net profit margin was 14.8%, a decrease of 0.5 percentage points [11]. - In Q3, the gross margin fell to 26.2%, a decline of 2.7 percentage points, with a net profit margin of 12.7%, also down by 0.5 percentage points [11]. Market Position and Strategy - The company has optimized its customer structure, with significant breakthroughs in acquiring new clients, which is expected to drive future growth [11]. - The company has a strong pipeline of new projects, with 42 models under development, which is more than double the number of projects from 2023, providing a solid foundation for sustainable growth [11]. Future Outlook - The company anticipates that if raw material prices stabilize, it could lead to additional performance flexibility. The entry into the robotics sector is expected to open up new valuation opportunities [11]. - Projected net profits for 2025 and 2026 are approximately 210 million and 270 million, respectively, corresponding to price-to-earnings ratios of 24.4 and 19.0 times [11].