Xianheng International(SH:605056) EBSCN·2025-10-31 13:05Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown strong revenue growth, with Q1-3 2025 revenue reaching 2.69 billion yuan, a year-on-year increase of 35.5% [1] - The company is expanding into new fields such as oil and gas and power generation, which is expected to drive future revenue growth [3] - The gross margin has declined to 22.2% in Q1-3 2025, down 5.8 percentage points year-on-year, attributed to lower-margin new business areas [2] Financial Performance Summary - For Q1-3 2025, the company achieved a net profit attributable to shareholders of 130 million yuan, up 32.5% year-on-year [1] - The operating cash flow for Q1-3 2025 was -20 million yuan, but improved by 140 million yuan year-on-year [1] - The company declared a cash dividend of 0.08 yuan per share, yielding 0.5% on the announcement date [1] Profitability and Cost Structure - The gross margin for Q3 2025 was 21.4%, a decrease of 5.9 percentage points year-on-year, primarily due to high growth in lower-margin sectors [2] - The operating expense ratio for Q1-3 2025 was 15.0%, down 6.1 percentage points year-on-year, indicating effective cost control [2] - The final net profit margin for Q3 2025 was 6.1%, a slight decrease of 0.8 percentage points year-on-year [2] Growth Potential and Forecast - The company is expected to continue its revenue growth trajectory, with projected revenues of 4.33 billion yuan in 2025, reflecting a growth rate of 19.99% [4] - The forecasted net profit for 2025 is 266 million yuan, with a growth rate of 19.32% [4] - The company is positioned as a leader in the MRO sector for power grids, with plans to expand into oil and petrochemical sectors [3]