Shenzhen Honor Electronic (SZ:300870) EBSCN·2025-11-03 03:40Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company achieved record high revenue in Q3 2025, with total revenue for the first three quarters reaching 3.387 billion yuan, a year-on-year increase of 27.16%, and a net profit attributable to shareholders of 220 million yuan, up 41.53% year-on-year [1][2]. - The company's gross margin for the first three quarters of 2025 was 20.47%, a decrease of 0.81 percentage points year-on-year, while the net margin improved to 6.58%, an increase of 0.69 percentage points year-on-year [2]. - The company is a leader in the domestic AI server power supply market, benefiting from the domestic production wave, with strong growth momentum and high profitability [4]. Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of 1.267 billion yuan, a year-on-year increase of 19.00% and a quarter-on-quarter increase of 2.81%. The net profit for Q3 was 88 million yuan, up 25.15% year-on-year and 4.54% quarter-on-quarter [2]. - The company's operating expenses have been optimized, with sales expense ratio, management expense ratio, and R&D expense ratio at 2.28%, 3.41%, and 6.22%, respectively, showing year-on-year changes of -0.38 percentage points, -0.72 percentage points, and +0.51 percentage points [2]. Product and Market Position - The company’s core products include high-power server power supplies, which are positioned at the forefront of the domestic market and comparable to international high-end levels. The company has established strong relationships with major domestic server manufacturers [3]. - The company is actively expanding its overseas business, having set up teams in Taiwan and the United States to penetrate global markets [3]. Profit Forecast and Valuation - The profit forecast for the company is set at 340 million yuan, 457 million yuan, and 578 million yuan for 2025, 2026, and 2027, respectively [4]. - The report provides a detailed financial outlook, including projected revenue growth rates and profit margins, indicating a robust growth trajectory [11][13].