GUOMAO REDUCER(SH:603915) Changjiang Securities·2025-11-03 03:10Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company achieved a revenue of 697 million yuan in Q3 2025, representing a year-on-year increase of 5.79%. The net profit attributable to shareholders was 79 million yuan, up 26.10% year-on-year, while the net profit excluding non-recurring items was 62 million yuan, an increase of 14.57% year-on-year. This marks the first positive growth in performance in seven quarters [4][10]. - The company is strengthening its advantages in traditional sectors while accelerating its layout in precision fields, seizing opportunities in embodied intelligence and AI. The improvement in profitability has been continuous since the beginning of the year [10][11]. - The company has established a preliminary platform in general, specialized, and precision fields, solidifying its long-term growth in the reducer sector [10]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a total revenue of 1.987 billion yuan, a year-on-year increase of 3.10%. The net profit attributable to shareholders was 185 million yuan, down 11.13% year-on-year, while the net profit excluding non-recurring items was 155 million yuan, down 12.06% year-on-year [4][10]. - In Q3 2025, the company’s revenue was 697 million yuan, with a net profit of 79 million yuan and a net profit excluding non-recurring items of 62 million yuan [4][10]. Market Position and Product Development - The company has seen a recovery in orders, with significant growth in sales of modular reducers, high-power reducers, and Jeno reducers benefiting from the lithium battery sector. Although sales of traditional industrial cycloidal pinwheel reducers have declined, their gross margin and average price remain stable [10]. - The product matrix continues to expand, with new products expected to contribute positively. The company has developed customized products and specialized reducers for various applications, including high-end vertical lathes and large rotary drive systems [10][11]. Strategic Initiatives - The company is accelerating its layout in the precision field and is actively engaging with partners in the robotics and automation sectors. It has established a joint venture to explore opportunities in robotic joint modules [10]. - The company completed its first AI vertical application test in the first half of 2025, aiming to integrate proprietary data to build a private model [10]. Future Outlook - The company is expected to achieve net profits attributable to shareholders of 282 million, 335 million, and 395 million yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 37x, 32x, and 27x respectively [10].