WST(SH:688122) Changjiang Securities·2025-11-09 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 3.989 billion yuan for the first three quarters of 2025, representing a year-over-year increase of 23.3%. The net profit attributable to the parent company was 650 million yuan, up 7.62% year-over-year. The net profit excluding non-recurring items was 589 million yuan, reflecting a year-over-year increase of 10.39% [2][4]. - In Q3 2025, the company achieved a revenue of 1.266 billion yuan, which is a year-over-year increase of 4.23% but a quarter-over-quarter decrease of 23.22%. The net profit attributable to the parent company was 104 million yuan, down 59.44% year-over-year and down 72.48% quarter-over-quarter. The net profit excluding non-recurring items was 95 million yuan, down 57.05% year-over-year and down 72.96% quarter-over-quarter [2][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 39.89 billion yuan, with a year-over-year growth of 23.3%. The net profit attributable to the parent company was 6.5 billion yuan, showing a year-over-year increase of 7.62%. The net profit excluding non-recurring items was 5.89 billion yuan, up 10.39% year-over-year. In Q3 2025, the revenue was 12.66 billion yuan, a year-over-year increase of 4.23% but a quarter-over-quarter decrease of 23.22%. The net profit attributable to the parent company was 1.04 billion yuan, down 59.44% year-over-year and down 72.48% quarter-over-quarter [2][4]. Operational Insights - The company is actively expanding production and inventory to ensure product delivery, with a contract liability balance of 240 million yuan at the end of Q3, an increase of 67.97% from the beginning of the period. The balance of construction in progress was 333 million yuan, up 43.39%, and inventory stood at 4.311 billion yuan, an increase of 11.68% from the beginning of the period [2][4]. Strategic Developments - The company plans to establish Hefei Juyuan, a joint venture focused on high-performance superconducting wire research and industrialization, with an investment of 16.15 million yuan, representing a 23.1% stake. This initiative aims to strengthen the company's leading position in the superconducting wire sector [2][4].