JINHUI(SH:603919) CMS·2025-10-26 11:18Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Views - The company reported Q3 revenue and net profit down by 4.9% and 33.0% year-on-year, respectively, with revenue meeting expectations while profit was impacted by an increase in income tax rate [1][6] - The company is focusing on enhancing its product mix, particularly high-end products priced above 300 yuan, and currently has a reasonable channel inventory level of two months [1][6] - Looking ahead to Q4 and next year, the company plans to expand in underperforming regions within the province, concentrate on mid-to-high-end price segments, and increase investment in the Northwest market while controlling expenses to achieve a slight decrease in expense ratios [1][6] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue and net profit of 230.6 million yuan and 32.4 million yuan, respectively, with a year-on-year decline of 1.0% and 2.8% [6] - In Q3 alone, the company recorded revenue and net profit of 54.6 million yuan and 2.5 million yuan, reflecting a year-on-year decrease of 4.9% and 33.0% [6] - The gross margin improved to 61.4% in Q3, up by 0.3 percentage points year-on-year, primarily due to changes in product mix [6][8] - The effective tax rate for Q3 was 43.2%, an increase of 30.1 percentage points year-on-year, which significantly affected net profit margins [6][8] Earnings Forecast - The company expects EPS for 2025, 2026, and 2027 to be 0.73 yuan, 0.79 yuan, and 0.88 yuan, respectively, with a corresponding 25x PE valuation for 2026 [1][6]