CAIP(SH:603035) Huachuang Securities·2025-10-28 08:45Investment Rating - The report maintains a "Strong Buy" rating for Changshu Automotive Trim (603035) with a target price of 26.19 CNY [2][6]. Core Insights - The company reported a significant revenue increase in Q3 2025, achieving 1.89 billion CNY, a year-on-year growth of 39% and a quarter-on-quarter growth of 31%. The net profit attributable to shareholders was 132 million CNY, marking a year-on-year increase of 2.1% and a quarter-on-quarter increase of 2.5% [2][6]. - The report highlights the company's recovery in profitability after four consecutive quarters of decline, driven by new factory ramp-up and strong sales from core customers [6][7]. - The company is expanding its overseas market presence and has initiated strategic cooperation with Brighter Signals B.V. to develop next-generation tactile sensing technology, which could be applied in both automotive and robotics sectors [6][7]. Financial Performance Summary - Revenue Forecast: - 2024A: 5.67 billion CNY - 2025E: 6.65 billion CNY (23.2% YoY growth) - 2026E: 7.78 billion CNY (17.3% YoY growth) - 2027E: 9.15 billion CNY (17.0% YoY growth) [2][7] - Net Profit Forecast: - 2024A: 425 million CNY - 2025E: 465 million CNY (9.2% YoY growth) - 2026E: 564 million CNY (21.4% YoY growth) - 2027E: 698 million CNY (23.6% YoY growth) [2][7] - Earnings Per Share (EPS): - 2024A: 1.16 CNY - 2025E: 1.27 CNY - 2026E: 1.54 CNY - 2027E: 1.90 CNY [2][7] - Valuation Ratios: - Price-to-Earnings (P/E) ratio for 2025 is projected at 14 times [6][7]. Market Position and Growth Potential - The company is expected to benefit from the ramp-up of new factories and the expansion into overseas markets, which will enhance its growth prospects [6][7]. - The collaboration with Brighter Signals B.V. opens new growth avenues, particularly in the robotics sector, which could significantly enhance the company's market position [6][7].