aisidi(SZ:002416) Guohai Securities·2025-11-03 06:01Investment Rating - The report maintains a "Buy" rating for the company [1][12]. Core Insights - The strategic focus is beginning to show results, with the second growth curve gradually taking shape [3]. - The company has experienced a significant improvement in operational quality and cash flow, despite a decline in revenue and net profit [6][7]. - New business layouts are flourishing, with investments in technology and innovation sectors, indicating a forward-looking approach [8][9]. Financial Performance Summary - For the first three quarters of 2025, the company reported a revenue of 39.375 billion, a year-on-year decrease of 31.47%, and a net profit of 0.337 billion, down 35.78% [6]. - In Q3 alone, the revenue was 14.005 billion, a decline of 24.75%, with a net profit of 0.116 billion, down 10.73% [6]. - Key profitability indicators such as gross margin and net margin have shown improvement, with Q3 gross margin at 5.30%, up 1.66 percentage points year-on-year [7]. Business Strategy and Future Outlook - The company is focusing on high-margin core businesses, which has led to a narrowing of profit declines in Q3 compared to the first half of the year [7]. - A 5 billion industry fund has been established in collaboration with Shenzhen State-owned Assets Supervision and Administration Commission, targeting sectors like smart terminals and artificial intelligence [8]. - The company is a key partner in the Honor brand, which is expected to benefit from its global expansion strategy, potentially leading to a revaluation of its holdings [9]. Earnings Forecast - Projected revenues for 2025, 2026, and 2027 are 51.572 billion, 53.284 billion, and 55.662 billion respectively, with corresponding net profits of 0.528 billion, 0.622 billion, and 0.688 billion [11]. - The report anticipates a gradual recovery in the consumer electronics sector, which may drive demand for the company's products [11].