LabTech(SH:688056) Huachuang Securities·2025-11-21 04:31Investment Rating - The report adjusts the investment rating to "Recommended" for the company, indicating an expected outperformance of 10%-20% relative to the benchmark index over the next six months [9][20]. Core Insights - The company reported a 23% year-on-year growth in non-recurring net profit for Q3, indicating a potential for new product launches to drive future growth [2][9]. - Despite a decline in revenue for the first three quarters of 2025, the company achieved a slight increase in net profit for Q3, suggesting an improving trend in profitability [2][9]. - The company’s core product received authoritative recognition, and new products are being launched, which are expected to contribute to future growth [9]. - The company has successfully expanded its overseas business, with foreign revenue increasing by 14.76% year-on-year, now accounting for 20.24% of total revenue [9]. Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 285 million yuan, a decrease of 8.43% year-on-year, and a net profit of 33 million yuan, down 7.26% year-on-year [2]. - The Q3 revenue was 93 million yuan, down 4.22% year-on-year, while the net profit for Q3 was 11 million yuan, up 1.76% year-on-year [2]. - The company’s gross margin for the first three quarters of 2025 was 45.80%, an increase of 0.94 percentage points year-on-year [9]. Future Projections - The company is expected to see net profits of 43 million yuan, 54 million yuan, and 66 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 10.8%, 24.8%, and 21.6% [9]. - The target price for the company is set at 40.1 yuan, reflecting a 13% upside from the current price of 35.48 yuan [4][9].