JINGU(SZ:002488) China Post Securities·2025-11-18 14:01Investment Rating - The report initiates coverage with a "Buy" rating for the company [9]. Core Insights - The company reported a revenue of 3.086 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 6.91%. The net profit attributable to shareholders was 42 million yuan, up 29.77% year-on-year, and the net profit excluding non-recurring items was 35 million yuan, an increase of 39.13% year-on-year [5]. - The gross margin for Q3 2025 improved significantly, reaching 17.38%, which is a year-on-year increase of 9.93 percentage points. This improvement is attributed to the increased sales and proportion of high-margin products, particularly the Avatar low-carbon wheels [6]. - The sales volume of the Avatar low-carbon wheels surged by 93% year-on-year in Q3, contributing to a 44% increase in overall product sales. The company is optimizing its product structure by converting some traditional wheel production lines to focus on Avatar low-carbon wheels [7]. - The company is set to commence production at its overseas factory in Thailand in early 2026, which is expected to enhance its international business growth alongside domestic operations [8]. Financial Projections - Revenue projections for 2025-2027 are 3.767 billion yuan, 5.697 billion yuan, and 7.284 billion yuan, respectively. The net profit attributable to shareholders is projected to be 630 million yuan, 2.61 billion yuan, and 4.21 billion yuan for the same period [9][11]. - The current price-to-earnings (P/E) ratio is projected to decrease from 154.24 in 2025 to 23.0 by 2027, indicating a potential for significant valuation improvement [9][11].