YUTO TECH.(SZ:002831) Guoxin Securities·2025-11-03 13:16Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company reported a slight revenue decline in Q3 2025, but profitability remained strong, with a net profit of 6.3 billion yuan, up 1.6% year-on-year. The revenue for the first three quarters of 2025 was 126.0 billion yuan, an increase of 2.8% [1][2] - The gross margin improved to 28.7% in Q3 2025, benefiting from lean production and smart transformation initiatives. The net profit margin reached 13.3%, the highest quarterly level since 2017, indicating steady improvement in profitability [2] - The company is strategically positioned with a global production capacity advantage, having established over 40 production bases in 10 countries. The construction of a new environmentally friendly factory in Indonesia is expected to enhance overseas capacity and drive revenue growth [2][3] Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 47.3 billion yuan, a decrease of 3.7% year-on-year, while the net profit was 6.3 billion yuan, reflecting a 1.6% increase. The net profit for the first three quarters was 11.8 billion yuan, up 6.0% [1] - The company maintained excellent cost control, with selling, general, and administrative expenses remaining stable, contributing to the improved profitability metrics [2] Growth Prospects - The company is accelerating its smart factory initiatives, with several factories already operational and more under construction or in planning stages, which is expected to enhance operational efficiency and capacity [3] - The company anticipates a revenue acceleration in Q4 2025 as the impact of the previous year's base effects diminishes and revenue recognition from major clients improves [1] Valuation and Forecast - The company maintains its profit forecast, expecting net profits of 16.8 billion yuan, 19.1 billion yuan, and 21.1 billion yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 19%, 14%, and 10% [4] - The current stock price corresponds to a price-to-earnings ratio of 15.0 for 2025, indicating a favorable valuation compared to historical levels [4][5]