Guotou Securities·2025-10-26 13:03Investment Rating - The investment rating for the company is "Buy-A" with a 12-month target price of 25.2 CNY [4]. Core Insights - The company reported a significant increase in profitability, with a net profit of 2.003 billion CNY for the first three quarters of 2025, representing a year-on-year growth of 76.01%. The net profit for Q3 alone was 900 million CNY, showing a remarkable increase of 120.73% year-on-year [2][3]. - The revenue for the first three quarters of 2025 reached 25.032 billion CNY, a slight increase of 1.27% year-on-year, with Q3 showing a notable acceleration in revenue growth at 5.95% year-on-year. This growth is attributed to improved performance in overseas cement business and the consolidation of Nigerian assets starting in September [1][2]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 8.986 billion CNY, up 5.95% year-on-year, and a net profit of 900 million CNY, up 120.73% year-on-year. The net profit margin for Q3 was 12.30%, reflecting a significant improvement from previous quarters [1][2]. - The gross margin and net margin for the period were 29.50% and 10.01%, respectively, both showing year-on-year increases [2]. Future Outlook - Despite the domestic cement demand being in a downward trend, the company exhibits strong resilience. The ongoing international expansion and the integration of high-margin aggregate business are expected to enhance future profitability. The revenue forecasts for 2025-2027 are projected at 36.027 billion CNY, 39.343 billion CNY, and 42.837 billion CNY, with respective year-on-year growth rates of 5.29%, 9.21%, and 8.88% [3]. - The expected net profits for the same period are 3.019 billion CNY, 3.496 billion CNY, and 3.882 billion CNY, with year-on-year growth rates of 24.93%, 15.82%, and 11.03% [3].