SPG(SH:600529) Changjiang Securities·2025-11-04 12:42Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 3.401 billion, a year-on-year decrease of 11.1%, and a net profit attributable to shareholders of 542 million, down 24.7% [3][4]. - The third quarter saw a revenue of 1.027 billion, a decline of 17.1%, with a net profit of 171 million, down 30.2% [3][4]. - Despite the demand pressure, the gross profit margin improved significantly, reaching 36.4% in Q3, an increase of 4.8 percentage points year-on-year, mainly due to the decline in raw material prices [8]. Summary by Sections Financial Performance - For the first three quarters, the company achieved a gross profit margin of 33.1%, up 1.0 percentage points year-on-year, despite a revenue decline attributed to weak pharmaceutical demand and pricing pressures from centralized procurement [8]. - The company’s net profit margin for the first three quarters was 16.0%, down 2.9 percentage points year-on-year [8]. - The cash collection ratio for the first three quarters was 117.0%, an increase of 15.7 percentage points year-on-year, indicating strong operational quality [8]. Market Conditions - The pharmaceutical packaging industry is currently facing significant demand pressure due to overall weak demand in the pharmaceutical sector and the impact of centralized procurement on pricing and rhythm [8]. - The penetration rate of borosilicate glass is expected to continue increasing in the medium term, with the company’s production capacity for primary water-resistant pharmaceutical glass bottles reaching expected targets [8]. Future Outlook - The company is projected to achieve net profits of 750 million and 850 million in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 18.5 and 16.4 [8].