HMT(SH:603306) Changjiang Securities·2025-11-04 10:42Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - The company reported steady revenue growth in the first three quarters of 2025, with a revenue of 1.78 billion yuan, up 15.9% year-on-year. However, net profit attributable to shareholders decreased by 12.1% year-on-year to 170 million yuan due to concentrated phase expenses and new production line ramp-up impacts [3][8]. - The employee stock ownership plan is fully implemented and will enter a normalized amortization phase in 2024, which is expected to gradually release profit elasticity [8]. - The automotive business is steadily growing with the gradual production of the Vietnam factory, while the optical communication business aims to achieve full ownership of Fuchuang Youyue, which is expected to further enhance profits through performance consolidation driven by AI [8]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 680 million yuan, representing an 18.3% year-on-year increase and an 18.2% quarter-on-quarter increase. However, net profit for Q3 was 40 million yuan, down 43.7% year-on-year and 28.4% quarter-on-quarter [3][8]. - The core net profit for the first three quarters, excluding one-time factors, was approximately 247 million yuan, up 14.1% year-on-year, while the non-recurring net profit was 230 million yuan, up 26.0% year-on-year [8]. Cost and Expense Analysis - The gross margin for Q3 2025 was 29.7%, a decrease of 0.5 percentage points year-on-year but an increase of 0.9 percentage points quarter-on-quarter. The expense ratios for sales, management, and financial costs were 1.6%, 16.7%, and 4.3%, respectively [8]. - The company confirmed share-based payment expenses of 51.69 million yuan in the first three quarters, with 43.76 million yuan recognized in Q3 alone. The initial depreciation and labor costs from the new Vietnam base impacted net profit by 32.74 million yuan [8]. Growth Drivers - The company plans to fully acquire Fuchuang Youyue, which specializes in optical communication and has a dual-base layout in Shenzhen and Malaysia. This acquisition is expected to support the delivery of high-speed optical modules and enhance profitability driven by AI demand [8]. - The expected net profits for 2025-2027 are projected to be 291 million yuan, 532 million yuan, and 875 million yuan, with corresponding year-on-year growth rates of 5%, 83%, and 65% [8].