M&G(SH:603899) ZHESHANG SECURITIES·2025-11-04 15:37Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Insights - The company reported a revenue of 17.328 billion yuan for the first three quarters of 2025, a year-on-year increase of 1%, with a net profit attributable to shareholders of 949 million yuan, down 7% year-on-year [1] - The company's traditional core business saw a revenue of 2.5 billion yuan in Q3 2025, a decrease of 3.6% year-on-year, while the online channel revenue from Chenguang Technology increased by 3.1% to 400 million yuan [2] - The KOLIP business experienced significant recovery in Q3 2025, achieving a revenue of 3.6 billion yuan, up 17.3% year-on-year, benefiting from the normalization of central state-owned enterprise procurement and successful new customer development [3] - The overall gross margin for Q3 2025 was 19.89%, a decrease of 0.56 percentage points year-on-year, with traditional core business gross margins improving due to product structure optimization [4] - The company is expected to achieve revenues of 25.4 billion, 28.2 billion, and 31.4 billion yuan from 2025 to 2027, with corresponding net profits of 1.35 billion, 1.54 billion, and 1.72 billion yuan, reflecting a long-term growth outlook [5] Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 6.519 billion yuan, an 8% increase year-on-year, with a net profit of 391 million yuan, up 1% year-on-year [1] - The gross margin for Q3 2025 was 19.89%, with specific product gross margins for writing tools, student stationery, and office stationery at 42.14%, 34.64%, and 27.87% respectively [4] Business Segments - The traditional core business generated 2.5 billion yuan in Q3 2025, with product sales in writing tools, student stationery, and office stationery showing slight declines [2] - The KOLIP business reported a revenue of 3.6 billion yuan in Q3 2025, reflecting a strong recovery and benefiting from new customer acquisition [3] Future Outlook - The company is expected to maintain a growth trajectory with projected revenues increasing by 5%, 11%, and 12% from 2025 to 2027, alongside a recovery in net profit growth [5]