Shanghai Titan Scientific (SH:688133) Huachuang Securities·2025-11-22 13:05Investment Rating - The report has downgraded the investment rating to "Recommendation" with a target price of 25.6 CNY, indicating a potential upside of 16% from the current price of 22.15 CNY [2][8]. Core Views - The company is experiencing revenue and profit pressure in Q3 2025, with a year-on-year revenue decline of 13.75% and a significant drop in net profit by 69.57% in the same quarter [2][8]. - Despite short-term performance challenges, the long-term outlook for the scientific services industry remains positive, with expectations of a recovery in downstream demand leading to a performance inflection point [8]. - The company is actively restructuring its business to focus on higher-margin operations, which has resulted in a slight improvement in gross margin to 22.15% [8]. Financial Summary - For the first three quarters of 2025, the company reported a total revenue of 1.848 billion CNY, down 13.06% year-on-year, while net profit attributable to shareholders was 11 million CNY, up 15.04% year-on-year [2][8]. - The projected revenues for 2025 to 2027 are 2.634 billion CNY, 2.812 billion CNY, and 3.072 billion CNY, respectively, with expected growth rates of -8.6%, 6.7%, and 9.2% [4][9]. - The net profit forecast for the same period is 16 million CNY, 36 million CNY, and 59 million CNY, with growth rates of 23.8%, 125.7%, and 64.4% respectively [4][9]. - The company has a current market capitalization of 3.642 billion CNY and a debt-to-equity ratio of 55.3% [5][9].