SACO(SZ:002025) Changjiang Securities·2025-11-11 10:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a cumulative operating revenue of 4.349 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 8.87%. However, the net profit attributable to the parent company decreased by 64.53% to 146 million yuan. In Q3 alone, the operating revenue reached 1.414 billion yuan, showing a year-on-year growth of 31.73%, while the net profit attributable to the parent company increased by 122.54% [6][8]. - The revenue decline is attributed to the ramp-up of production capacity, demand in the defense industry, and issues with revenue recognition. The company is still in the process of ramping up production, and the utilization rate remains low. Additionally, rising prices of precious metals have led to higher costs, impacting profitability [2][6][8]. - The company is focusing on its core business and aims to enhance its delivery capabilities while increasing investment in new domains and strategic emerging industries. Significant growth in orders has been observed in defense, new energy, and data communication sectors [6][8]. Summary by Sections Financial Performance - The company achieved total operating revenue of 5.025 billion yuan in 2024, with projections of 5.717 billion yuan in 2025, 7.454 billion yuan in 2026, and 9.282 billion yuan in 2027. The net profit attributable to the parent company is expected to be 505 million yuan in 2025, 867 million yuan in 2026, and 1.118 billion yuan in 2027, with corresponding year-on-year growth rates of 45%, 72%, and 29% respectively [19][19]. - The earnings per share (EPS) are projected to be 1.10 yuan in 2025, 1.90 yuan in 2026, and 2.45 yuan in 2027 [19]. Market Position and Strategy - The company is enhancing its technological innovation and market expansion efforts, achieving breakthroughs in key technologies. It has secured opportunities for three major new projects and has seen over 30% growth in orders from strategic emerging industries [6][8]. - The company is implementing refined management practices, focusing on cost control and optimizing marketing assessments to improve revenue recognition and cash flow [6][8].