AECC AP(SH:600893) Changjiang Securities·2025-11-04 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 22.912 billion yuan for the first three quarters of 2025, a year-on-year decrease of 11.73%. The net profit attributable to the parent company was 108 million yuan, down 85.13% year-on-year. The net profit after deducting non-recurring gains and losses was 68 million yuan, a decrease of 90.02% year-on-year. In Q3 2025, the revenue was 8.814 billion yuan, an increase of 18.97% year-on-year and 11.1% quarter-on-quarter. However, the net profit attributable to the parent company was 16 million yuan, down 87.69% year-on-year and 80.79% quarter-on-quarter. The net profit after deducting non-recurring gains and losses was 30 million yuan, a decrease of 78.14% year-on-year but an increase of 56.2% quarter-on-quarter [2][6]. Financial Performance Summary - For the first three quarters of 2025, the company experienced a significant decline in profitability, with a gross profit margin of 10.74%, down 1.29 percentage points year-on-year. The expense ratio increased to 9.15%, up 0.97 percentage points year-on-year, while the net profit margin was 0.83%, down 2.32 percentage points year-on-year. The R&D expense ratio rose to 1.79%, an increase of 0.49 percentage points year-on-year, and the financial expense ratio increased to 1.92%, up 0.77 percentage points year-on-year [12]. Market Position and Future Outlook - The growth in contract liabilities indicates a recovery in downstream demand, and the transition of new products to mass production is expected to drive the industry into a prosperous cycle. As of the end of Q3 2025, the company's construction in progress was 2.454 billion yuan, an increase of 10.51% compared to the beginning of the period. The balance of fixed assets was 22.605 billion yuan, a slight increase of 0.3% compared to the beginning of the period. The balance of contract liabilities was 8.319 billion yuan, an increase of 85.45% compared to the beginning of the period [12].