Jiangsu Bojun Industrial Technology (SZ:300926) EBSCN·2025-10-31 12:26Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Insights - The company reported a significant increase in revenue and net profit for the first three quarters of 2025, with total revenue up 42.4% year-on-year to 4.07 billion yuan and net profit up 70.5% to 630 million yuan [2]. - The gross margin improved, with a year-on-year increase of 0.6 percentage points to 27.0% for the first three quarters of 2025, and a notable increase in Q3 2025 gross margin by 4.8 percentage points year-on-year to 29.4% [3]. - The company has established strong customer relationships with leading domestic new energy vehicle manufacturers, enhancing its market position [4]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 1.56 billion yuan, representing a year-on-year growth of 37.2% and a quarter-on-quarter growth of 10.7% [2]. - The net profit for Q3 2025 reached 270 million yuan, showing a year-on-year increase of 102.1% and a quarter-on-quarter increase of 35.1% [2]. Cost and Margin Analysis - The company’s selling, general, and administrative expenses (SG&A) ratio decreased by 0.9 percentage points year-on-year to 6.3% for the first three quarters of 2025 [3]. - The improvement in gross margin is attributed to economies of scale and a decline in upstream raw material prices [3]. Customer and Capacity Advantages - The company has deepened its partnerships with major clients such as Li Auto, Seres, Geely, and BYD, while also expanding its client base to include new players like Leap Motor and Xpeng [4]. - As of Q3 2025, the company’s construction projects increased by 92% year-on-year to 767 million yuan, indicating a robust capacity expansion strategy [4]. Technological Edge - The company has achieved comprehensive layout in bodywork processes and is developing integrated die-casting solutions, which are expected to enhance both volume and pricing [4]. - The company is also venturing into the robotics field, collaborating with Shanghai Electric on customized technology development [4]. Earnings Forecast - The report has revised upward the net profit forecasts for 2025, 2026, and 2027 by 14%, 24%, and 38% respectively, projecting net profits of 920 million yuan, 1.16 billion yuan, and 1.39 billion yuan [5].