Secote co.ltd(SH:603283) Soochow Securities·2025-11-04 12:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's Q3 performance shows a sequential improvement, driven by the innovation cycle of core customers and a diversified business layout, indicating long-term growth potential [1] - The company has experienced a significant recovery in profitability, with Q3 net profit increasing by 414.2% quarter-on-quarter [7] - The company is focusing on expanding its presence in semiconductor and new energy sectors, which are expected to drive future growth [7] Financial Performance Summary - For the first three quarters of 2025, the company achieved total revenue of 2.535 billion yuan, a year-on-year decrease of 20.6%, while net profit attributable to shareholders was 401 million yuan, down 15.6% year-on-year [7] - The gross margin for the first three quarters of 2025 was 46.2%, an increase of 1.5 percentage points year-on-year, with a significant improvement in Q3 gross margin to 48.2% [7] - The company's operating cash flow turned positive in Q3 2025, with a net cash flow from operating activities of 144 million yuan [7] Business Outlook - The company is expected to benefit from the demand for high-precision assembly and testing equipment in the consumer electronics sector, particularly with the rise of AI smartphones and new terminal products [7] - The semiconductor equipment segment is expanding through acquisitions and partnerships, positioning the company to capture market share in advanced processes [7] - The new energy equipment business is anticipated to grow, focusing on automation in automotive production lines and battery production [7] Earnings Forecast - The report adjusts the net profit forecast for 2025 to 500 million yuan and for 2026 to 640 million yuan, with a new forecast for 2027 set at 810 million yuan [7] - The current market valuation corresponds to dynamic P/E ratios of 26, 20, and 16 for 2025, 2026, and 2027 respectively [7]