Henglin(SH:603661) ZHESHANG SECURITIES·2025-11-26 15:26Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported Q3 2025 performance with revenue of 3.14 billion, a year-on-year increase of 4.4%, and a net profit attributable to shareholders of 97 million, up 112% year-on-year, driven by stable growth in cross-border e-commerce [1][3] - The cross-border e-commerce business showed robust growth, with significant sales increases for key brands on Amazon in the U.S. [2] - The gross profit margin improved to 17.56%, up 3.24 percentage points year-on-year, contributing to the overall profit enhancement [3] Summary by Sections Q3 Performance - Revenue reached 3.14 billion, a 4.4% increase year-on-year - Net profit attributable to shareholders was 97 million, a 112% increase year-on-year - Non-recurring net profit was 93 million, up 110% year-on-year [1] Cross-Border E-commerce Growth - The cross-border e-commerce business maintained steady growth despite tariff fluctuations - Key brands such as Sweetcrispy, Dumos, and Smug showed strong sales performance from July to September, with Sweetcrispy sales increasing by 34.5%, 32.3%, and 38.8% year-on-year [2] - Dumos sales increased by 89.0%, 54.8%, and 147.9% year-on-year, while Smug saw increases of 24.2%, 9.8%, and 130.1% year-on-year [2] Profitability and Margin Improvement - The gross profit margin for Q3 was 17.56%, reflecting a year-on-year increase of 3.24 percentage points - The operating expense ratio was 13.29%, up 0.52 percentage points year-on-year, with sales expense ratio at 7.31%, up 2.28 percentage points [3] - The net profit margin was 3.1%, an increase of 1.57 percentage points year-on-year, indicating potential for further profit recovery [3] Earnings Forecast - Revenue projections for 2025-2027 are 12.035 billion, 13.074 billion, and 14.180 billion, representing year-on-year growth of 9%, 8.64%, and 8.45% respectively - Net profit forecasts for the same period are 384 million, 500 million, and 605 million, with year-on-year growth of 45.98%, 30.26%, and 20.90% respectively [4][6]