AVICHM(SH:600765) Soochow Securities·2025-11-04 09:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a total revenue of 7.776 billion yuan for the first three quarters of 2025, a year-on-year decrease of 6.59%, and a net profit attributable to shareholders of 616 million yuan, down 39.72% year-on-year [1][8] - The decline in profit is attributed to a faster increase in total operating costs, particularly in management and R&D expenses, indicating a continued investment in internal governance and technology [8] - The company's asset-liability ratio was 49.05% at the end of Q3 2025, slightly down from 51.61% a year earlier, indicating a stable leverage level [8] - Cash flow from operating activities showed a net outflow of 913 million yuan, but the free cash flow improved significantly to 91 million yuan, suggesting a gradual recovery in cash generation capacity [8] Financial Summary - Revenue projections for 2025-2027 are adjusted to 10.53 billion, 12.91 billion, and 14.02 billion yuan respectively, with corresponding P/E ratios of 24, 19, and 18 times [8] - The company expects a sales gross margin of 23.69% in 2024, increasing to 27.58% by 2027, indicating a potential recovery in profitability [9] - The net profit margin is projected to improve from 6.18% in 2024 to 8.70% in 2027, reflecting a positive trend in profitability [9]