SHUANGHUAN COMPANY(SZ:002472) Minsheng Securities·2025-10-29 08:19Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6]. Core Views - The company has shown strong performance in Q3 2025, with a revenue of 22.4 billion yuan, a year-on-year decrease of 7.6%, but a quarter-on-quarter increase of 3.4%. The net profit attributable to shareholders reached 3.21 billion yuan, reflecting a year-on-year increase of 21.1% and a quarter-on-quarter increase of 6.6% [1][2]. - The company is positioned as a leader in precision drive system gears and is accelerating its globalization efforts while expanding into smart drive mechanisms and robotic joint businesses. The long-term growth outlook is positive, with projected revenues of 104.7 billion yuan, 124.7 billion yuan, and 149.6 billion yuan for 2025, 2026, and 2027 respectively [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a total revenue of 64.7 billion yuan, a decrease of 4.1% year-on-year, while the net profit attributable to shareholders was 9.0 billion yuan, an increase of 21.7% year-on-year. The Q3 2025 revenue was 22.4 billion yuan, with a net profit of 3.21 billion yuan [1][2]. - The gross margin for Q3 2025 was 26.8%, up by 2.9 percentage points year-on-year, attributed to a decrease in the proportion of lower-margin steel trading business and improved economies of scale in passenger vehicle gear business [2]. Growth Drivers - The company has become a core supplier for leading domestic brands in smart cleaning machines and e-bikes, and is expanding into the plastic gear sector. It aims to develop precision transmission components for smart home and office applications [3]. - The company is deepening its international layout, focusing on the Hungarian base to enhance its global operations and engage with major automotive manufacturers and Tier 1 suppliers, particularly in the electric drive gear development for new energy vehicles [3]. Earnings Forecast - The earnings forecast for the company indicates a net profit attributable to shareholders of 13.0 billion yuan, 15.2 billion yuan, and 18.9 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.54 yuan, 1.79 yuan, and 2.23 yuan [4][5].