TES(SZ:003019) HUAXI Securities·2025-10-27 13:48Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company reported a revenue of 1.865 billion yuan for the first three quarters of 2025, a slight decrease of 0.04% year-on-year, with a net profit attributable to shareholders of 156 million yuan, down 4.16% year-on-year [1] - In Q3 2025, the company achieved a revenue of 669 million yuan, representing a year-on-year increase of 20.17% and a quarter-on-quarter increase of 16.52%. The net profit attributable to shareholders was 44 million yuan, up 34.49% year-on-year but down 29.79% quarter-on-quarter [2] - The gross margin remained relatively stable, with a gross margin of 23.66% for the first three quarters of 2025, an increase of 0.20 percentage points year-on-year. The Q3 gross margin was 23.21%, up 0.57 percentage points year-on-year [3] - The company operates in three main business segments: ODM, MicroTouch brand, and smart cockpit, which are developing synergistically [4] Financial Performance - The company expects revenues for 2025-2027 to be 2.415 billion, 2.886 billion, and 3.433 billion yuan, respectively, with year-on-year growth rates of 9.1%, 19.5%, and 18.9% [10] - The projected net profit for 2025-2027 is 223 million, 273 million, and 349 million yuan, with year-on-year growth rates of 18.6%, 22.4%, and 27.8% [10] - The earnings per share (EPS) for 2025-2027 are expected to be 1.26, 1.55, and 1.97 yuan, respectively [10] - The company’s price-to-earnings (PE) ratios for 2025-2027 are projected to be 29.21x, 23.86x, and 18.67x [10] Business Segments - The ODM business provides customized products and services, evolving from a single engine to a dual-engine model to adapt to industry changes [4] - The MicroTouch brand has been developing its business since its acquisition in 2020, focusing on product development and expanding its global distribution channels [4] - The smart cockpit business has established a strong competitive position in the mid-to-high-end market for touch display solutions for electric vehicles [4]