BOHAI SECURITIES·2025-10-29 10:20Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company's performance has been under pressure, with a year-on-year decline in revenue and net profit for the first three quarters of 2025. However, there is a notable improvement in net profit for Q3, which increased by 15.14% year-on-year [2][3] - The trend towards agricultural machinery intelligence and high-end products remains unchanged, highlighted by the recent launch of the Dongfanghong LF3604 power-shifting tractor, which signifies a significant technological advancement in heavy-duty tractors [4] Financial Summary - For the first three quarters of 2025, the company reported revenue of 9.703 billion yuan, a decrease of 9.63% year-on-year, and a net profit of 994 million yuan, down 9.69% year-on-year, with basic earnings per share of 0.8848 yuan [2][3] - In Q3 alone, the company achieved revenue of 2.775 billion yuan, a decline of 5.29% year-on-year, but net profit improved to 225 million yuan, marking a 15.14% increase year-on-year [3] - The gross margin and net margin for the first three quarters were 16.23% and 10.90%, respectively, remaining relatively stable compared to the same period last year [3] - The average return on equity (ROE) was 13.17%, a decrease of 2.41 percentage points compared to the same period in 2024 [3] Earnings Forecast - Under a neutral scenario, the company is expected to generate revenues of 10.961 billion, 11.593 billion, and 12.646 billion yuan for 2025, 2026, and 2027, respectively. Corresponding net profits are projected to be 858 million, 904 million, and 1.014 billion yuan, with earnings per share of 0.76, 0.80, and 0.90 yuan [5]