LY iTECH(SZ:002600) KAIYUAN SECURITIES·2025-10-31 07:51Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported continued high growth in profits for the third quarter, with a focus on expanding into new business areas. The consumer electronics sector is expected to grow significantly in the AI era, and the company is actively pursuing opportunities in humanoid robots, AI glasses, foldable screens, and servers [1][2] - The company has raised its profit forecasts for 2025, 2026, and 2027, expecting net profits of 24.82 billion, 33.30 billion, and 42.86 billion respectively, with the current stock price corresponding to P/E ratios of 46.9, 34.9, and 27.2 [1] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 375.90 billion, a year-on-year increase of 19.25%, and a net profit attributable to shareholders of 19.41 billion, up 37.66% year-on-year. The gross profit margin was 16.61%, an increase of 0.74 percentage points [1] - In the third quarter alone, revenue reached 139.65 billion, a year-on-year increase of 12.94% and a quarter-on-quarter increase of 15.12%. The net profit attributable to shareholders was 10.12 billion, up 41.91% year-on-year and 177.37% quarter-on-quarter [1] - The company has a projected revenue growth of 20.0% in 2025, followed by 16.1% and 15.1% in the subsequent years [4] Business Expansion and Acquisitions - The company is expanding its consumer electronics business, benefiting from hardware upgrades driven by innovations in edge AI. It is also actively developing humanoid robots, AI glasses, foldable screens, and server solutions [2] - The acquisition of Zhejiang Xianglong for 2.404 billion in cash aims to enhance the company's automotive parts business, which is expected to generate significant revenue and profit in the coming years [3] Valuation Metrics - The company’s projected P/E ratios for 2025, 2026, and 2027 are 46.9, 34.9, and 27.2 respectively, indicating a favorable valuation outlook as earnings are expected to grow significantly [4] - The projected net profit margins are expected to improve from 4.7% in 2024 to 6.1% by 2027, reflecting enhanced profitability [4]