KSHG(SH:605333) GUOTAI HAITONG SECURITIES·2025-11-05 07:25Investment Rating - The report maintains a rating of "Accumulate" for the company, with a target price of 37.40 CNY [5][11]. Core Insights - The company has shown steady revenue growth in the first three quarters of 2025, with a revenue of 58.38 billion CNY, representing a year-on-year increase of 5.54%. However, its profitability is under short-term pressure, with a net profit of 4.25 billion CNY, down 3.10% year-on-year [2][11]. - The company is actively expanding into emerging business areas such as humanoid robots, which is expected to create a second growth curve beyond its automotive business [2][11]. Financial Summary - Total revenue is projected to grow from 40.03 billion CNY in 2023 to 91.55 billion CNY in 2025, reflecting a compound annual growth rate (CAGR) of 14.4% [4][12]. - Net profit attributable to shareholders is expected to increase significantly from 540 million CNY in 2023 to 703 million CNY in 2025, with a remarkable growth rate of 1,139.2% in 2024 [4][12]. - Earnings per share (EPS) is forecasted to rise from 0.12 CNY in 2023 to 1.51 CNY in 2025 [4][12]. Business Performance - In Q3 2025, the company achieved a revenue of 22.09 billion CNY, up 4.47% year-on-year, but the net profit decreased by 19.10% year-on-year to 1.48 billion CNY [11]. - The gross margin for Q3 2025 was 15.45%, down 5.05 percentage points year-on-year, indicating pressure on profitability due to initial production phases of some projects and competitive pricing in the market [11]. Emerging Business Development - The company is focusing on building capabilities in automotive connectors and humanoid robots, aiming to enhance market competitiveness through integrated supply capabilities [11]. - A dedicated R&D team of over 100 members has been established to develop high-voltage connectors and integrated solutions for electric vehicle systems, indicating a strategic shift towards innovation and technology advancement [11].