SUPCON Technology (SH:688777) Changjiang Securities·2025-11-12 10:12Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 5.654 billion yuan for the first three quarters of 2025, a year-on-year decrease of 10.78%, and a net profit attributable to shareholders of 432 million yuan, down 39.78% year-on-year. The transition pains continue, but there are signs of recovery in key indicators such as contract liabilities and inventory, which increased by 12% and 3% respectively quarter-on-quarter in Q3 [2][6] - New business segments, particularly in industrial AI, showed growth with revenues from TPT and robotics reaching 154 million yuan and 122 million yuan respectively, marking increases of 37.56 million yuan and 11.69 million yuan compared to H1 [2][6] - The company expects net profits attributable to shareholders to reach 910 million yuan, 1.16 billion yuan, and 1.46 billion yuan for 2025-2027, reflecting a year-on-year change of -18.4%, +27.4%, and +25.9% respectively, indicating a potential recovery [2][6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 5.654 billion yuan, down 10.78% year-on-year, and a net profit of 432 million yuan, down 39.78% year-on-year. The Q3 performance showed a revenue of 1.824 billion yuan, a decrease of 12.52% year-on-year, and a net profit of 78 million yuan, down 61.25% year-on-year [6][2] - The gross margin for Q3 was approximately 31.42%, with a slight decline compared to previous periods, attributed to increased competition and pricing pressures in a challenging market environment [13] Business Development - The TPT platform has entered a phase of large-scale application, with over 110 successful projects implemented across various industries, including petrochemicals and thermal power. The TPT 2.0 platform was launched, enhancing capabilities and flexibility for users [13] - The company has begun to see results from its subscription model, with annual recurring revenue (ARR) reported at 76.91 million yuan, indicating progress in its strategic transformation [13] Investment Outlook - The company is expected to face ongoing transition challenges but is viewed positively for its long-term value in the industrial AI sector. The focus on new business models and technology advancements is anticipated to drive future growth [13][2]