Arctech Solar(SH:688408) Tianfeng Securities·2025-11-15 13:51Investment Rating - The investment rating for the company is "Buy" and it is maintained [6][17]. Core Insights - The company reported a revenue of 5.378 billion yuan for the first three quarters of 2025, a year-on-year decrease of 10.11%, and a net profit attributable to shareholders of 121 million yuan, down 71.59% year-on-year. In Q3 2025, revenue was 1.341 billion yuan, a decline of 48.54%, with a net profit of -36 million yuan, a decrease of 118.35% year-on-year [1]. - The decline in revenue is attributed to project delivery delays caused by several factors, including policy shifts in the photovoltaic industry, land acquisition issues, and regional electricity pricing reforms, which have led to a slowdown in investment and a temporary drop in new installation demand [1][2]. - The company has a strong order backlog of approximately 7.198 billion yuan as of the end of Q3 2025, with significant contributions from tracking brackets and fixed brackets, indicating robust future growth potential [3]. Financial Performance Summary - The comprehensive gross margin for the first three quarters of 2025 was 16.90%, down 2.47 percentage points year-on-year. In Q3 2025, the gross margin was 16.37%, a decrease of 3.01 percentage points year-on-year but an increase of 0.44 percentage points quarter-on-quarter [2]. - The company’s operating expenses ratio increased to 12.48%, up 3.69 percentage points year-on-year, primarily due to investments in global expansion and increased R&D expenses for new strategic initiatives [2]. - The financial forecast for 2025 to 2027 estimates net profits attributable to shareholders at 254 million yuan, 752 million yuan, and 850 million yuan, respectively, with corresponding P/E ratios of 46.27, 15.62, and 13.81 [3][5].