XUSHENG(SH:603305) Changjiang Securities·2025-11-11 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [6][7]. Core Insights - In Q3 2025, the company achieved operating revenue of 1.13 billion yuan, a year-on-year increase of 0.4%, and a net profit attributable to shareholders of 100 million yuan, a year-on-year increase of 70.4% [2][4][11]. - The company is expanding its product matrix in aluminum die-casting, extrusion, and forging for automotive components, while also accelerating its layout in magnesium alloys and actively entering the robotics sector [6][11]. - The company aims to establish a triangular production capacity network across China, North America, and Southeast Asia, positioning itself as a global aluminum platform enterprise [6][11]. Summary by Sections Financial Performance - In Q3 2025, the company reported a gross margin of 21.5%, which improved by 3.7 percentage points year-on-year but decreased by 1.3 percentage points quarter-on-quarter due to lower capacity utilization [11]. - The company’s operating expenses ratio was 11.8%, an increase of 1.9 percentage points year-on-year and 3.3 percentage points quarter-on-quarter [11]. - The net profit margin for Q3 2025 was 8.8%, reflecting a year-on-year increase of 3.6 percentage points [11]. Market Position and Strategy - The company has successfully secured approximately 1.9 billion yuan in orders from mainstream North American electric vehicle manufacturers and has concentrated on key projects with leading domestic new energy vehicle manufacturers [11]. - The company’s overseas production facility in Mexico began operations in June 2025, and a new base in Thailand broke ground in July 2025, supporting its global expansion strategy [11]. - The company is also advancing its energy storage business, achieving approximately 300 million yuan in revenue from related projects in the first half of 2025, surpassing the total revenue for 2024 [11]. Future Outlook - The company forecasts net profits attributable to shareholders of 430 million yuan, 580 million yuan, and 740 million yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 35.3X, 26.0X, and 20.4X [6][11].