Hexing(SH:603556) Huaan Securities·2025-11-09 11:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is showing signs of an earnings inflection point, with significant improvements in revenue and profit in Q3 2025 compared to the previous year. The revenue for Q3 2025 reached 1.445 billion yuan, a year-on-year increase of 25.1%, while the net profit attributable to shareholders was 336 million yuan, up 30.2% year-on-year [4][5] - The report indicates that new domestic regulations regarding smart energy meters are expected to improve product gross margins, despite a decline in gross margin observed in the first three quarters of 2025 [5] - The company is pursuing a strategy of "global layout and localized operation," aiming to enhance marketing channels in key countries and new markets, which is anticipated to improve operational performance [5] Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 3.369 billion yuan, a decrease of 1.2% year-on-year, and a net profit of 732 million yuan, down 7.5% year-on-year. The gross margin for the first three quarters was 39.89%, a decline of 6.08 percentage points year-on-year [4][5] - The projected revenues for 2025 to 2027 are 4.960 billion yuan, 5.454 billion yuan, and 6.050 billion yuan respectively, with corresponding net profits of 945 million yuan, 1.081 billion yuan, and 1.245 billion yuan [6][8] - The report anticipates a gradual recovery in gross margin, with estimates of 38.8%, 39.8%, and 40.8% for 2025, 2026, and 2027 respectively [8] Market Comparison - The company's stock performance has been compared to the CSI 300 index, showing a significant divergence in trends over the past year [2][3]