WEIXING(SZ:002003) Soochow Securities·2025-11-03 13:21Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a Q3 sequential improvement and announced a stock incentive plan, reflecting management's confidence in future growth [1] - The Q3 performance showed a recovery in revenue and profit growth compared to Q2, driven by better performance in the button business and continued strength in international markets [7] - The management has set ambitious profit growth targets for the upcoming years as part of the stock incentive plan, indicating strong confidence in the company's future [7] Financial Performance Summary - For the first three quarters of 2025, total revenue was 36.33 billion yuan, a year-on-year increase of 1.46%, while net profit attributable to shareholders was 5.83 billion yuan, a year-on-year decrease of 6.46% [7] - The company’s gross margin improved to 43.71%, up 1.01 percentage points year-on-year, attributed to product mix optimization and scale effects from overseas operations [7] - The financial expenses significantly increased due to exchange rate fluctuations, impacting net profit margins, which decreased to 16.06% for the first three quarters [7] Earnings Forecast and Valuation - The earnings forecast for 2025 has been adjusted downwards to 6.81 billion yuan, with corresponding P/E ratios of 19, 17, and 15 for the years 2025 to 2027 [7] - The projected total revenue for 2025 is 48.56 billion yuan, with a year-on-year growth rate of 3.88% [1][8] - The company aims for net profit growth rates of no less than 16.52%, 24.22%, and 33.84% for the years 2026 to 2028, based on the average net profit from 2022 to 2024 [7]