EMTEK(SZ:300938) Changjiang Securities·2025-10-26 13:43Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The company reported a revenue of 597 million yuan for the first three quarters of 2025, representing a year-on-year increase of 8.3%. In Q3 2025 alone, revenue reached 225 million yuan, showing a significant year-on-year growth of 22.2%. The net profit attributable to the parent company for the same period was 155 million yuan, also up by 8.3%, with Q3 net profit at 60 million yuan, reflecting a year-on-year increase of 19.3% [2][6]. Summary by Sections Financial Performance - For Q1 to Q3 2025, the company achieved a total revenue of 597 million yuan, with a net profit of 155 million yuan. Q3 revenue was 225 million yuan, marking a 22.2% increase year-on-year, while net profit for Q3 was 60 million yuan, up 19.3% year-on-year [2][6]. Business Segments - The automotive testing segment generated 162 million yuan in revenue for the first half of 2025, a year-on-year increase of 10.52%. The company has a strong presence in the automotive parts and reliability testing sector, serving clients like Tesla and Huawei. The electronic and electrical product testing segment saw revenue of 90 million yuan, growing 2.35% year-on-year. However, the testing equipment segment experienced a decline, with revenue of 72 million yuan, down 14.85% year-on-year [12]. Profitability Metrics - The net profit margin for Q3 2025 was 27.5%, a slight decrease of 0.36 percentage points year-on-year. The gross margin was 58.6%, down 1.49 percentage points, likely due to the recovery in revenue from lower-margin equipment sales. The expense ratio for the period was 28.6%, showing a minor decrease [12]. Cash Flow - Operating cash flow improved in Q3, with a net cash flow of 67 million yuan, up 21% year-on-year. The first half of 2025 saw a decline in operating cash flow, primarily due to long credit terms with major clients [12]. Future Growth Initiatives - The company has established a joint venture for robotics, aiming to enhance its growth trajectory. This venture focuses on the development and manufacturing of various types of robots, which is expected to reduce labor costs and improve efficiency in testing services [12]. Revenue and Profit Forecast - The company forecasts revenues of 808 million yuan, 912 million yuan, and 1.026 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 196 million yuan, 229 million yuan, and 264 million yuan. The projected growth rates are 11.4%, 12.9%, and 12.5% for revenue, and 11.1%, 16.8%, and 15.6% for net profit [12].