Kstopa IntelliE(SZ:300836) Changjiang Securities·2025-10-30 11:20Investment Rating - The investment rating for the company is "Buy" and is maintained [11]. Core Views - The company reported a revenue of 486 million in the first three quarters of 2025, representing a year-over-year increase of 41.47%. The net profit attributable to the parent company was 51 million, up 178.61% year-over-year. In Q3 2025, the revenue reached 257 million, showing an 81.21% year-over-year increase and a 71.37% quarter-over-quarter increase [2][7]. - The rapid revenue growth is primarily driven by the execution of large contracts related to energetic materials, with a significant reduction in contract liabilities by 50.7% to 164 million by the end of Q3 2025. The company is actively producing and stocking products, with inventory increasing by 59.37% to 594 million [14]. - The company has successfully entered the aerospace sector, winning a contract worth 97.22 million for a major state-owned company's assembly systems, marking a significant expansion in its ammunition production capabilities [14]. - The company is focusing on expanding into high-demand sectors such as military and AI, benefiting from increased capital expenditures in the explosives and ammunition safety production fields [14]. Summary by Sections Financial Performance - For Q1-3 2025, the company achieved a gross margin of 24.9%, with a year-over-year increase of 0.98 percentage points. The operating expense ratio decreased to 15.09%, down 4.37 percentage points year-over-year, leading to a net profit margin of 10.58%, an increase of 5.35 percentage points year-over-year [14]. Market Position and Strategy - The company has established strong partnerships with key clients in the military sector and is planning to set up a subsidiary in Vietnam to enhance its AI capabilities, which is expected to contribute significantly to revenue growth [14].