AVICHM(SH:600765) Changjiang Securities·2025-11-06 15:36Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 7.776 billion yuan for the first three quarters of 2025, a year-on-year decrease of 6.59%. The net profit attributable to the parent company was 616 million yuan, down 39.72% year-on-year. The net profit after deducting non-recurring gains and losses was 534 million yuan, a decrease of 44.5% year-on-year. In Q3 2025, the revenue was 2.026 billion yuan, a year-on-year decrease of 12.01% and a quarter-on-quarter decrease of 41.18%. The net profit attributable to the parent company was 124 million yuan, down 57.57% year-on-year and 57.95% quarter-on-quarter. The net profit after deducting non-recurring gains and losses was 54 million yuan, a decrease of 80.04% year-on-year and 81.56% quarter-on-quarter [5][6][13] Summary by Sections Financial Performance - For Q1-Q3 2025, the gross profit margin was 28.32% and the net profit margin was 9.13%. In Q3 2025, the gross profit margin was 25.63% and the net profit margin was 5.46%. The fluctuation in profitability was mainly due to industry cycle adjustments and increased costs such as taxes, R&D expenses, and financial expenses [13] Market Position and Strategy - As an industry leader, the company is actively preparing its capacity to meet new demand cycles. By the end of Q3 2025, the inventory balance was 5.832 billion yuan, an increase of 17.17% compared to the beginning of the period. The balance of construction in progress was 750 million yuan, up 11.77% from the beginning of the period. The balance of contract liabilities was 241 million yuan, a decrease of 47.52% compared to the beginning of the period. The company has obtained supplier qualifications from 46 clients, including major players in the industry, and will further expand into the aerospace forging and gas turbine markets [13]