CBGF(SZ:002478) HTSC·2025-10-27 07:00Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 8.91 [1][9]. Core Insights - The company reported Q3 revenue of RMB 1.472 billion, a year-over-year increase of 3.66% but a quarter-over-quarter decrease of 8.04%. The net profit attributable to the parent company was RMB 138 million, showing a year-over-year increase of 61.15% [6]. - The company is actively upgrading its product lines and expanding into emerging markets, which supports the maintained "Buy" rating [6][8]. - The gross margin for Q3 2025 improved to 17.7%, a year-over-year increase of 0.6 percentage points, aided by a slight decrease in operating expense ratio [7]. Financial Performance and Forecast - Revenue projections for the company are as follows: RMB 5,696 million in 2024, RMB 6,120 million in 2025, RMB 6,460 million in 2026, and RMB 6,827 million in 2027, with respective growth rates of -14.48%, 7.44%, 5.55%, and 5.68% [5]. - The net profit attributable to the parent company is forecasted to be RMB 634.22 million in 2024, RMB 596.25 million in 2025, RMB 711.67 million in 2026, and RMB 751.49 million in 2027, with growth rates of -19.00%, -5.99%, 19.36%, and 5.60% respectively [5]. - The company’s EPS is projected to be RMB 0.70 in 2024, RMB 0.66 in 2025, RMB 0.79 in 2026, and RMB 0.83 in 2027 [5][9]. Market Position and Strategy - The company is focusing on high-end product transformation, particularly in the oil pipe and boiler pipe sectors, with a shift towards nickel-based alloy pipes and stainless steel products [8]. - The company is also enhancing its brand in specialty materials and expanding its market for precision automotive pipes [8].