HMT(SH:603306) China Post Securities·2025-11-24 11:19Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has shown steady revenue growth, with a 15.87% year-on-year increase in revenue for the first three quarters of 2025, reaching 1.784 billion yuan. However, net profit decreased by 12.06% to 172 million yuan due to rising expenses and one-time factors [4][5]. - The company is a leader in the automotive passive safety sector, with a product line that includes safety fabrics and airbags. It is also expanding into the semiconductor and computing power manufacturing sectors, aiming to create a second growth engine [5]. - The acquisition of a 57.84% stake in Fuchuang Youyue is planned, which would enhance the company's control over its operations in the AI and computing power manufacturing industry [6]. Financial Performance - For the first three quarters of 2025, the company reported a revenue of 1.784 billion yuan, with a quarterly revenue of 676 million yuan in Q3, reflecting an 18.34% year-on-year increase. However, net profit for Q3 fell by 43.72% to 36 million yuan [4]. - The company expects revenues of 2.7 billion yuan, 3.2 billion yuan, and 3.8 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 387 million yuan, 573 million yuan, and 775 million yuan for the same years [6][9]. - The company’s financial ratios indicate a projected increase in earnings per share (EPS) from 0.84 yuan in 2024 to 2.35 yuan in 2027, alongside a decrease in price-to-earnings (P/E) ratio from 54.62 to 19.56 over the same period [9][12].