S.C(SZ:300724) Changjiang Securities·2025-11-17 01:50Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's performance in Q3 is primarily driven by improved profitability and excellent cost control. The operating cash flow has significantly optimized, showing a reduction in cash outflow compared to Q2. New orders are mainly benefiting from overseas market expansion, while domestic TOPCon expansion is slowing down. However, with the penetration of TOPCon+ technology and the expansion of BC, the company's orders are expected to recover marginally [2][6][13]. - In Q3 2025, the company achieved revenue of 13.106 billion, a year-on-year increase of 6.17%, and a net profit of 2.688 billion, up 32.90% year-on-year. The Q3 revenue was 4.734 billion, down 17.26% year-on-year, while the net profit was 858 million, up 7.72% year-on-year [6][10]. - The company has made significant breakthroughs in the perovskite field and is expanding into semiconductor equipment and composite conductive materials, continuing to build new order volumes. Recent achievements include successful shipments of self-developed equipment and overcoming technical bottlenecks in transparent conductive oxide films [2][13]. Summary by Sections Financial Performance - In Q3 2025, the company reported a gross margin of 28.06%, an increase of 4.68 percentage points year-on-year, and a net margin of 18.13%, up 4.20 percentage points year-on-year. The company’s expense ratio decreased by 1.08 percentage points year-on-year, indicating strong cost control [13]. - The company’s inventory and contract liabilities were 6.622 billion and 6.481 billion, respectively, showing a significant decrease from Q2 2025, indicating pressure on new orders [13]. Market Dynamics - The industry is actively promoting optimization of existing capacity while limiting expansion, with downstream product prices remaining at historical lows, leading to overall weak profitability in the industry. The company’s new orders are expected to benefit from overseas market expansion, while domestic TOPCon technology is being optimized to enhance efficiency and cost-effectiveness [13]. - The domestic supply-demand landscape is expected to improve, with the penetration of TOPCon+ technology and the expansion of BC potentially leading to a marginal recovery in orders [13]. Future Outlook - The company is projected to achieve a net profit of 3.05 billion and 1.47 billion for 2025 and 2026, respectively, corresponding to price-earnings ratios of 12x and 25x [13].