SGC(SH:603269) Hua Yuan Zheng Quan·2025-11-04 10:38Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The company's performance is driven by an increase in gross margin, leading to steady growth in earnings. The employee stock ownership plan reflects confidence in future development [6] - The company reported a revenue of 1.219 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 10.68%, with a net profit attributable to shareholders of 51.23 million yuan, up 25.10% year-on-year [9] - The company plans to repurchase shares worth between 60 million to 120 million yuan for the employee stock ownership plan, which will account for 1.60% to 3.20% of the total share capital [9] Financial Performance Summary - Revenue for 2025 is projected to be 1.823 billion yuan, with a year-on-year growth rate of 14.01% [8] - Net profit for 2025 is expected to be 109 million yuan, with a year-on-year growth rate of 14.05% [8] - The gross margin for the first three quarters was 27.44%, an increase of 3.56 percentage points year-on-year [9] - The company’s total market capitalization is approximately 3.739 billion yuan [4] Earnings Forecast and Valuation - The forecasted net profit for 2025-2027 is 109 million yuan, 127 million yuan, and 151 million yuan respectively, corresponding to a PE ratio of 34X, 29X, and 25X based on the stock price as of November 4 [7] - The company’s return on equity (ROE) is expected to increase from 10.02% in 2025 to 12.36% in 2027 [8]