Arctech Solar(SH:688408) Changjiang Securities·2025-11-17 02:51Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Views - 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%. The net profit attributable to the parent company was 121 million yuan, down 71.59% year-on-year. In Q3 2025, revenue was 1.341 billion yuan, a decline of 48.54% year-on-year and 45.88% quarter-on-quarter, with a net profit of -36 million yuan, reflecting a year-on-year decrease of 118.58% and a quarter-on-quarter decrease of 176.45% [2][5][11]. Summary by Sections Financial Performance - For Q3 2025, the gross profit margin was 16.4%, a quarter-on-quarter increase of 0.4 percentage points, while the expense ratio rose to 18.7%, an increase of 9.5 percentage points, primarily due to the decline in revenue. The total expenses for Q3 were 250 million yuan, showing a growth compared to the previous quarter [11]. - The company experienced asset impairment reversals of 90 million yuan and credit impairment losses of 100 million yuan in Q3, which had a limited impact on profits [11]. Future Outlook - The second phase of the Jeddah factory in Saudi Arabia was completed in October, with an annual delivery capacity of 15 GW, enhancing the company's position in the Middle East market. The company has resumed cooperation with India's Adani, which is expected to contribute to order growth in the Indian market. As of the end of Q3, the company had an order backlog of 7.2 billion yuan, including 6.01 billion yuan in tracking systems and 1.11 billion yuan in fixed structures. The resolution of project delivery delays is anticipated to restore revenue and profit [11].