XINXING PIPES(SZ:000778) Soochow Securities·2025-10-28 14:47Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 27.183 billion yuan for the first three quarters of 2025, a year-on-year increase of 0.4%, and a net profit attributable to shareholders of 699 million yuan, up 44.7% year-on-year, which aligns with expectations [7] - The steel industry is transitioning into a passive destocking recovery cycle, driven by policy-induced supply contraction, structural demand recovery, and cost optimization [7] - The company is expanding its international presence with a new factory in Egypt, which will produce ductile iron pipes, addressing local market needs and reducing costs [7] - Profit forecasts for the company are set at 273 million yuan, 988 million yuan, and 2.713 billion yuan for 2025, 2026, and 2027 respectively, with corresponding growth rates of 63.24%, 261.43%, and 174.62% [7] Financial Summary - Total revenue projections for the company are 36.194 billion yuan in 2024, 33.871 billion yuan in 2025, and 36.761 billion yuan in 2026, with a growth rate of 8.53% in 2026 [8] - The company's net profit is expected to reach 1.35082 billion yuan in 2023, with a significant increase to 2.71292 billion yuan by 2027 [1] - The latest diluted EPS is projected to be 0.34 yuan in 2023, increasing to 0.68 yuan by 2027 [1]