CHINT ELECTRICS(SH:601877) Changjiang Securities·2025-11-18 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported stable operations with a focus on expanding into overseas and new markets. For the first three quarters of 2025, the company achieved a revenue of 46.4 billion yuan, which is flat year-on-year. The net profit attributable to shareholders was 4.18 billion yuan, representing a year-on-year increase of 19.5%. The net profit excluding non-recurring items was 3.81 billion yuan, up 13.3% year-on-year. In Q3 2025, the revenue was 16.78 billion yuan, down 3.7% year-on-year but up 11.4% quarter-on-quarter. The net profit for Q3 was 1.62 billion yuan, a year-on-year increase of 3.1% and a quarter-on-quarter increase of 16.8% [3][8]. Summary by Sections Revenue Performance - For the first three quarters of 2025, the company’s revenue was 46.4 billion yuan, unchanged year-on-year. In Q3 2025, the revenue was 16.78 billion yuan, down 3.7% year-on-year but up 11.4% from the previous quarter [3][8]. Profitability - The gross profit margin for the first three quarters of 2025 was 27.51%, an increase of 2.23 percentage points year-on-year. In Q3 2025, the gross profit margin was 26.51%, up 1.14 percentage points year-on-year but down 4.05 percentage points quarter-on-quarter. The company’s profitability in the low-voltage electrical sector is expected to continue recovering [8]. Expense Management - The total expense ratio for the first three quarters of 2025 was 13.13%, an increase of 0.48 percentage points year-on-year. In Q3 2025, the total expense ratio was 12.83%, up 0.45 percentage points year-on-year but down 0.41 percentage points quarter-on-quarter. The company maintained stable expense ratios across various categories [8]. Inventory and Cash Flow - As of the end of Q3 2025, the company’s inventory was 54.63 billion yuan, an increase of 30.3% year-on-year. The contract liabilities were 5.53 billion yuan, up 94.7% year-on-year. The asset-liability ratio was 66.09%, an increase of 3.21 percentage points year-on-year. The operating cash flow for the first three quarters of 2025 was 15.25 billion yuan, up 103.4% year-on-year, with Q3 showing a significant increase of 179.3% year-on-year [8]. Future Outlook - The company is expected to achieve a net profit attributable to shareholders of approximately 4.96 billion yuan in 2025, corresponding to a price-to-earnings ratio of about 12.4 times. The low-voltage sector is anticipated to maintain rapid growth, and the rapid layout of AIDC is expected to contribute to future growth [8].