Investment Rating - The investment rating for the company is "Outperform" (Maintain) [1][2] Core Views - The company shows initial signs of revenue recovery, with a significant increase in contract liabilities, growing by 261% compared to the beginning of the year [1][2] - The company has maintained its profit forecast for 2025-2027, expecting net profits of 0.44 billion, 0.52 billion, and 0.77 billion respectively, with corresponding PE ratios of 52.5, 44.3, and 29.7 times [2][3] Financial Performance - In the first three quarters of 2025, the company achieved revenue of 1.28 billion, a year-on-year decrease of 10.72%, and a net profit attributable to the parent company of 211.4 million, down 29.29% year-on-year [2] - The third quarter of 2025 saw a revenue of 474.4 million, an increase of 5.33% year-on-year and 15.66% quarter-on-quarter, while net profit was 66.45 million, down 36.92% year-on-year but up 252.86% quarter-on-quarter [2] Market Dynamics - The company is transitioning from new tool purchases to tool remanufacturing, with remanufacturing service revenue in the first half of 2025 reaching 10.01 million, up 47.33% year-on-year [3] - The company leverages nearly 20 years of industry experience to provide customized rock-breaking tools based on geological conditions and equipment types [3] Industry Outlook - Infrastructure investment in water conservancy reached a historical high of 1,352.9 billion in 2024, growing by 12.8% year-on-year, which is expected to further drive the development of the shield machine/TBM industry [4] - The ongoing development of the Yajiang project is expected to provide additional momentum for the industry [4]