Riyue HI(SH:603218) Western Securities·2025-11-09 11:01Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company achieved a revenue of 4.855 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 52.45%. However, the net profit attributable to the parent company decreased by 14.25% to 434 million yuan [1][3] - In Q3 2025, the company reported a revenue of 1.630 billion yuan, up 16.67% year-on-year but down 15.35% quarter-on-quarter. The net profit attributable to the parent company for the same period was 151 million yuan, showing a significant year-on-year increase of 77.42% but a quarter-on-quarter decrease of 7.33% [1][3] - The company's gross margin improved in Q3 2025, reaching 17.46%, which is an increase of 2.69 percentage points year-on-year and 1.57 percentage points quarter-on-quarter [1] - The company has reduced its expense ratio, with a total expense ratio of 6.35% in the first three quarters of 2025, down from 8.06% in the same period last year, indicating effective cost control [1] Summary by Sections Revenue and Profitability - The company reported a total revenue of 48.55 billion yuan for the first three quarters of 2025, a 52.45% increase year-on-year. The net profit attributable to the parent company was 4.34 billion yuan, down 14.25% year-on-year [1][3] - For Q3 2025, the revenue was 16.30 billion yuan, reflecting a 16.67% year-on-year increase, while the net profit was 1.51 billion yuan, up 77.42% year-on-year [1] Gross Margin and Expense Control - The gross margin for the first three quarters of 2025 was 16.32%, a decrease of 0.90 percentage points year-on-year. In Q3 2025, the gross margin improved to 17.46%, an increase of 2.69 percentage points year-on-year and 1.57 percentage points quarter-on-quarter [1] - The total expense ratio for the first three quarters of 2025 was 6.35%, down from 8.06% in the previous year, indicating improved expense management [1] Future Outlook - The company is expected to achieve net profits of 6.71 billion yuan, 8.51 billion yuan, and 9.77 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 7.6%, 26.8%, and 14.8% [2] - The earnings per share (EPS) are projected to be 0.65 yuan, 0.83 yuan, and 0.95 yuan for the years 2025, 2026, and 2027, respectively [2]