China Leadshine Technology (SZ:002979) Changjiang Securities·2025-11-12 09:22Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a significant increase in performance for Q3 2025, benefiting from improved industry conditions and a low base from the previous year. The overall profitability remains robust, with traditional sectors gaining market share and breakthroughs in emerging fields such as humanoid robots and high-end equipment. The embodied intelligence business is expected to continue contributing to revenue and performance growth [2][6][14]. - For the first three quarters of 2025, the company achieved revenue of 1.3 billion, a year-on-year increase of 12.57%. The net profit attributable to shareholders was 160 million, up 11.01%, and the net profit after deducting non-recurring items was 155 million, an increase of 9.16%. In Q3 2025 alone, revenue reached 409 million, a year-on-year increase of 23.21%, with net profit attributable to shareholders at 41 million, up 47.62% [6][14]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a gross margin of 39.74%, a slight decrease of 0.22 percentage points year-on-year, while the net profit margin improved to 10.20%, an increase of 1.39 percentage points year-on-year. The overall expense ratio decreased by 0.7 percentage points year-on-year, indicating strong cost control capabilities despite increased expenses due to stock incentive plans [14]. Business Development - The company is making significant strides in humanoid robots and high-end equipment, with core components such as joint modules and motors gaining traction in the market. Hundreds of robot companies and module manufacturers are testing and using the company's products, which have received widespread market recognition. The company has secured several large commercial orders for its products, including the dexterous hand series, which is expected to see rapid sales growth [14]. Future Outlook - The company is projected to achieve net profits of 254 million and 312 million in 2025 and 2026, respectively, corresponding to price-to-earnings ratios of 51x and 42x. The outlook remains positive for the humanoid robot business, supported by the company's strong hardware and operational control capabilities [14].