XJEC(SZ:000400) Minsheng Securities·2025-10-31 02:14Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index [5]. Core Insights - The company achieved a revenue of 9.454 billion yuan in the first three quarters of 2025, a year-on-year decrease of 1.38%, while the net profit attributable to shareholders was 901 million yuan, reflecting a growth of 0.75% [1]. - The gross margin improved, with a year-on-year increase of 1.94 percentage points to 23.88% for the first three quarters of 2025, and a quarter-on-quarter increase of 0.25 percentage points to 24.16% in Q3 2025 [1]. - The company’s inventory increased to 3.424 billion yuan in the first three quarters of 2025, providing support for future business growth [2]. - The company is expected to benefit from the ongoing bidding for ultra-high voltage projects by the State Grid, particularly in its DC transmission business segment [2]. - R&D investment has been increasing, with a R&D expense ratio of 5.15% in the first three quarters of 2025, leading to innovative breakthroughs in power electronics [2]. Financial Forecasts - Revenue projections for 2025-2027 are 18.346 billion yuan, 20.560 billion yuan, and 23.189 billion yuan, with corresponding growth rates of 7.4%, 12.1%, and 12.8% [3]. - Net profit attributable to shareholders is forecasted to be 1.374 billion yuan, 1.675 billion yuan, and 2.128 billion yuan for the same period, with growth rates of 23.0%, 21.9%, and 27.1% respectively [3]. - The company is positioned as a leader in ultra-high voltage converter valves and control protection systems, with continuous optimization of profitability [3].