CLOUDWALK(SH:688327) Shenwan Hongyuan Securities·2025-10-29 12:13Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Insights - The company reported Q3 2025 revenue of 190 million yuan, a year-on-year increase of 75.68%, exceeding market expectations of around 30%. The net profit attributable to the parent company was -80 million yuan, compared to -150 million yuan in the same period last year [6] - The revenue growth was primarily driven by the rapid expansion of computing power construction business, with accelerated project delivery contributing significantly to revenue [6] - The reduction in net loss is attributed to improved cash flow and effective cost control, with Q3 operating cash flow turning positive at 60 million yuan [6] - The gross margin is expected to be impacted by the increasing proportion of lower-margin AI-related business [6] - The company is focusing on large model projects across various industries, including collaborations with Shanghai Jiao Tong University and Huawei [6] - The revenue forecasts for 2025-2027 are set at 5.44 billion, 7.42 billion, and 11.0 billion yuan, with net profits projected at -455 million, -360 million, and -217 million yuan respectively [6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 544 million yuan, with a year-on-year growth rate of 36.8% [5] - The gross margin for 2025 is projected to be 42.7%, with a significant increase expected in subsequent years [5] - The company’s return on equity (ROE) is forecasted to improve from -35.1% in 2025 to -16.0% in 2027 [5]