CMS·2025-10-29 03:59Investment Rating - Strongly Recommended (Maintain) [3] Core Insights - The company reported a revenue of 100.52 billion yuan for Q3 2025, a year-on-year increase of 11.63%, but the net profit attributable to shareholders decreased by 32.69% to 5.32 billion yuan [1] - The company's revenue from computing power increased by 180% year-on-year, accounting for 25% of total revenue, becoming the second-largest revenue pillar after consumer business [7] - The operator network revenue faced pressure due to a decline in domestic telecom infrastructure investment, while the enterprise business grew by 130% year-on-year [7] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 289.67 billion yuan, a year-on-year increase of approximately 5.11%, but the net profit dropped by 87.84% to 264 million yuan [7] - The company’s R&D expenses for the first three quarters were 17.81 billion yuan, accounting for 18% of revenue, indicating a strong commitment to innovation [7] - The projected total revenue for 2025 is estimated at 140.51 billion yuan, with a year-on-year growth of 16% [9] Market Position and Strategy - The company is focusing on a "connection + computing power" strategy, enhancing its AI infrastructure deployment [7] - The company maintains a strong market share in core areas, with its 5G base station and core network shipments ranking second globally [7] - The consumer business, including home and personal segments, accounted for 25% of total revenue, showing robust growth [7] Valuation Metrics - The current price-to-earnings (PE) ratio is projected to be 32.6 for 2025, indicating a valuation that reflects growth expectations [9] - The price-to-book (PB) ratio is expected to be 3.1 for 2025, suggesting a premium valuation relative to book value [9]