UE(SH:603600) Huaan Securities·2025-10-28 09:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 3.483 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 2.75%, while the net profit attributable to shareholders was 191 million yuan, a year-on-year decrease of 14.83% [3] - In Q3 2025, the company achieved a revenue of 1.294 billion yuan, down 3.26% year-on-year, and a net profit of 59 million yuan, down 40.15% year-on-year, primarily due to inflation in Europe and the US affecting terminal demand and increased sales expenses from expanding into top countries and customers [3] - The gross profit margin for the first three quarters of 2025 was 21.31%, a decrease of 1.37 percentage points year-on-year, with a net profit margin of 5.5%, down 1.13 percentage points year-on-year [3] Summary by Sections Financial Performance - The company’s revenue for 2025 is projected to be 5.156 billion yuan, with a year-on-year growth of 8.6%, and net profit is expected to be 321 million yuan, reflecting an 8.5% increase [4] - The gross profit margin is expected to improve slightly to 21.7% in 2025, with a gradual increase to 22.2% by 2027 [7] Market Strategy - The company is actively expanding its market presence by targeting new customers and enhancing its own brand business, which has led to an increase in sales expenses [3] - The strategy includes leveraging overseas bases to tap into new markets and customers, particularly in Europe, Southeast Asia, and Australia, where growth has been significant [3] Future Outlook - The company aims to transition from a primarily export-oriented model to a balanced approach that includes both domestic and international sales, as well as a focus on its own brand and ODM model [4] - The expected earnings per share (EPS) for 2025 is projected at 0.97 yuan, with a corresponding price-to-earnings (P/E) ratio of 11.81 [4]