Loongson Technology(SH:688047) Guoxin Securities·2025-11-09 14:08Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company reported a revenue growth of 13.9% year-on-year for the first three quarters, with total revenue reaching 351 million yuan. However, the net profit attributable to the parent company showed a slight increase in losses, amounting to -394 million yuan [1]. - The company is entering a new development cycle, focusing on independent research and development, particularly in processors and supporting chips. The successful development of new products has enhanced the market competitiveness of the Longxin CPU [2]. - A restricted stock incentive plan was announced, indicating confidence in future growth. The plan involves granting 530,862 restricted shares, representing 0.13% of the total share capital, with performance targets set for revenue growth [3]. Summary by Sections Financial Performance - For the first three quarters, the company achieved a revenue of 351 million yuan, reflecting a year-on-year increase of 13.9%. The gross profit margin was 42.37%, up by 12.40 percentage points year-on-year [1]. - In Q3 2025, the revenue was 107 million yuan, showing a year-on-year growth of 21.5%, while the net profit loss narrowed to -99 million yuan compared to the previous year [1]. Future Outlook - The company is expected to benefit from the recovery in the electronic government market and the industrial control market, which will drive revenue growth. The revenue projections for 2025-2027 have been adjusted to 629 million, 913 million, and 1.256 billion yuan, respectively [4]. - The net profit forecast for the same period is projected to improve, with losses expected to decrease significantly by 2027, reaching a profit of 155 million yuan [4]. Incentive Plans - The restricted stock incentive plan aims to align employee interests with company performance, with specific revenue growth targets set for 2025 and 2026 [3].