Henglin(SH:603661) Western Securities·2025-10-30 08:59Investment Rating - The investment rating for the company is "Buy" [6][3]. Core Insights - The company reported a revenue of 8.488 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 8.66%, and a net profit attributable to shareholders of 279 million yuan, up 4.81% year-on-year. In Q3 alone, revenue reached 3.14 billion yuan, a 4.44% increase year-on-year, with net profit soaring by 111.71% to 97 million yuan [2][3]. - The growth in Q3 revenue is attributed to the sustained growth of cross-border e-commerce, driven by new product launches and increased online penetration due to competitive pricing advantages following offline price hikes. The OEM business remains stable, with the company's production capacity in Vietnam effectively covering exports to the U.S. [2][3]. - The gross margin for the first three quarters of 2025 was 17.76%, a decrease of 0.77 percentage points year-on-year, while Q3 gross margin improved significantly to 17.56%, an increase of 3.24 percentage points year-on-year. This improvement is mainly due to a significant drop in shipping costs, which decreased by 39% year-on-year, and a strategic shift towards profitability in the cross-border e-commerce segment [2][3]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 8.488 billion yuan, with a year-on-year growth of 8.66%. The net profit attributable to shareholders was 279 million yuan, reflecting a 4.81% increase year-on-year. In Q3, revenue was 3.14 billion yuan, up 4.44% year-on-year, and net profit was 97 million yuan, a remarkable increase of 111.71% [2][3]. - The gross margin for the first three quarters was 17.76%, down 0.77 percentage points year-on-year, while Q3 gross margin improved to 17.56%, up 3.24 percentage points year-on-year [2][3]. Business Segments - The cross-border e-commerce segment continued its growth trend in Q3, supported by new product launches and enhanced online penetration due to competitive pricing. The OEM business showed stability, with the company's Vietnam production capacity effectively covering U.S. exports [2][3]. Cost Management - The company has effectively controlled expenses, with sales, management, R&D, and financial expense ratios decreasing by 0.52, 0.18, 0.27, and 0.6 percentage points respectively in the first three quarters of 2025 [3]. Future Outlook - The company is expected to maintain a growth trend in Q4, with cross-border business revenues continuing to rise and profit margins improving. The OEM business is anticipated to recover as the impact of tariffs and price increases on the market diminishes [3]. - The company is transitioning from a traditional OEM manufacturer to a "manufacturing + brand" dual-driven enterprise, leveraging cross-border e-commerce channels for long-term growth [3].