North Industries (SZ:000519) Guotou Securities·2025-11-03 11:50Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 12-month target price of 23.29 CNY [5][8]. Core Insights - The company reported a revenue of 3.424 billion CNY for the first three quarters of 2025, reflecting a year-on-year increase of 25.95%. The net profit attributable to shareholders was -0.059 billion CNY, slightly improved from -0.060 billion CNY in the same period last year [1]. - The company experienced a strong revenue growth of 44.8% year-on-year in Q3 2025, reaching 1.23 billion CNY, while the net profit attributable to shareholders showed a significant reduction in losses compared to the previous year [2]. - The company has increased its R&D investment by 6.56% to 307 million CNY in the first three quarters, focusing on enhancing its information technology capabilities to solidify its leading position in the ammunition sector [3]. - By the end of Q3 2025, the company's contract liabilities reached 2.092 billion CNY, a 276% increase from the end of Q2 2025, indicating strong downstream demand. The company is actively preparing for demand release, with prepayments increasing by 347% to 706 million CNY and inventory rising by 34.56% to 3.887 billion CNY [4]. Financial Summary - The company is projected to achieve net profits of 250 million CNY, 453 million CNY, and 751 million CNY for the years 2025, 2026, and 2027, respectively, with growth rates of turning profitable, 81.35%, and 65.82% [5]. - The financial forecast indicates a revenue of 6.193 billion CNY for 2025, with a net profit margin of 4.0% [10].