WEIXING(SZ:002003) GOLDEN SUN SECURITIES·2025-10-29 02:25Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [5]. Core Views - The company reported a revenue growth of 0.9% year-on-year in Q3 2025, reaching 1.29 billion yuan, with a net profit attributable to shareholders increasing by 3% to 210 million yuan [1]. - The international business is expected to outperform domestic operations, with a 14% year-on-year revenue growth in H1 2025 for international operations, while domestic revenue declined by 4% [1]. - The establishment of the Vietnam factory is anticipated to enhance the company's ability to meet overseas production demands and improve customer engagement [2]. - The company is projected to achieve a revenue growth of 3.8% in 2025, reaching 4.852 billion yuan, while net profit is expected to decline by 4.4% to 669 million yuan [2]. Summary by Sections Financial Performance - In Q3 2025, the gross margin improved by 0.9 percentage points to 45.2%, while the net profit margin increased by 0.3 percentage points to 16.5% [1]. - For the first three quarters of 2025, the company experienced a revenue increase of 1.5% to 3.63 billion yuan, but net profit decreased by 6.5% to 580 million yuan [1]. - The company’s earnings per share (EPS) for 2025 is projected to be 0.57 yuan, with a price-to-earnings (P/E) ratio of 19 times [2][4]. Production Capacity - As of H1 2025, the company’s button production capacity reached 6.3 billion pieces, and zipper production capacity was 485 million meters, showing an increase from H1 2024 [2]. - The Vietnam factory is expected to contribute positively in the long term, despite short-term losses due to foreign exchange impacts [2]. Market Position - The company is recognized as a leading player in the global accessories market, with enhanced product development capabilities and expanded business scale driving revenue growth [2]. - The report emphasizes the company's competitive advantages through smart manufacturing and operational efficiency improvements [2].