EBSCN·2025-11-03 08:40Investment Rating - The report maintains a "Buy" rating for the company’s A-shares and H-shares [4][6] Core Insights - The company achieved a revenue of 18.83 billion CNY in the first three quarters of 2025, representing a year-on-year growth of 14.9%. The net profit attributable to shareholders was 2.72 billion CNY, up 10.9%, while the net profit excluding non-recurring items reached 2.61 billion CNY, marking a significant increase of 30.9% [1][4] - The company's gross margin improved to 32.4%, an increase of 3.1 percentage points year-on-year, while the net margin slightly decreased to 15.3%, down 0.7 percentage points [1] - The rail transit equipment business showed stable growth, with revenue reaching 10.31 billion CNY, a year-on-year increase of 9.2%. The company maintained a stable market share in the bidding for train sets and locomotives, which is expected to support the annual performance [2] - The emerging equipment business experienced rapid development, with revenue of 8.43 billion CNY, reflecting a year-on-year growth of 22.3%. The company made significant progress in IGBT chip technology and is expanding its production capacity in power semiconductors [3] Summary by Sections Financial Performance - For Q3 2025, the company reported a revenue of 6.62 billion CNY, a 9.6% increase year-on-year, and a net profit of 1.05 billion CNY, up 7.7% [1] - The company’s projected net profits for 2025-2027 are 4.30 billion CNY, 4.81 billion CNY, and 5.35 billion CNY, respectively, with corresponding EPS of 3.17 CNY, 3.54 CNY, and 3.94 CNY [4][5] Revenue Breakdown - The rail transit equipment segment generated 10.31 billion CNY in revenue, with specific contributions from various sub-segments: electrical equipment (8.08 billion CNY), engineering machinery (0.90 billion CNY), communication signals (0.76 billion CNY), and other equipment (0.57 billion CNY) [2] - The emerging equipment segment's revenue was 8.43 billion CNY, with notable growth in basic components (3.84 billion CNY), electric drive systems for new energy vehicles (1.87 billion CNY), and renewable energy generation (1.59 billion CNY) [3] Profitability and Valuation - The company’s projected P/E ratios for A-shares are 23, 19, 16, 15, and 13 for the years 2023 to 2027, respectively [5][11] - The return on equity (ROE) is expected to improve from 8.42% in 2023 to 10.45% in 2027, indicating enhanced profitability [11]