Core Insights - The company has reported a significant improvement in its performance outlook for the first three quarters of 2025, indicating a turning point in profitability with expected net profit growth of 22% to 36% in Q3 2025 compared to the previous year [1][2]. Financial Performance - For the first three quarters of 2025, the company anticipates a net profit attributable to shareholders of between 61 million to 66 million yuan, reflecting a year-on-year decline of 49% to 45% due to the absence of EPC project revenue, which was 200 million yuan in H1 2024 [1]. - In Q3 2025, the expected net profit is projected to be between 44.01 million to 49.01 million yuan, marking a year-on-year increase of 22% to 36% [2]. Order Growth and Market Position - The company has experienced a substantial increase in order contracts, with a year-on-year growth of 32% in the first three quarters of 2025, including a 12% increase domestically and a 51% increase internationally. In Q3 2025 alone, contract signing surged by 80%, with domestic orders up by 48% and international orders up by 114% [3]. - The company is strategically enhancing its position in the upstream copper and gold mining sector by acquiring a 22.5% stake in Swiss company Virdis Resources, which will secure development rights for the Alacran copper-gold-silver mine, thereby boosting demand for traditional mineral processing equipment and spare parts [3]. Spare Parts Business Growth - The spare parts market is poised for long-term growth due to increasing consumption of wear-resistant parts driven by rising copper production and declining ore grades. The global copper production is expected to grow at a CAGR of 2.7% from 2018 to 2027, while the average copper ore grade has decreased from 0.79% in 2000 to 0.43% in 2021 [4]. - The penetration rate of rubber wear-resistant parts is expected to continue rising, as rubber parts offer better wear resistance, longer lifespan, and lighter weight compared to metal parts. The trend towards larger grinding mills is likely to further enhance the adoption of rubber parts, positioning the company as a leader in this segment [4]. - The company is also expanding into the cylinder market, having established trial collaborations with several clients for forged composite liners, indicating significant growth potential in this area [4]. Investment Outlook - The company is positioned as a leading player in the mineral processing equipment sector, benefiting from overseas demand and product diversification. Revenue projections for 2025 to 2027 are 980 million, 1.28 billion, and 1.58 billion yuan, with year-on-year growth rates of -12%, 30%, and 24% respectively. Net profit forecasts for the same period are 90 million, 130 million, and 190 million yuan, with growth rates of -26%, 48%, and 48% respectively. The CAGR from 2024 to 2027 is estimated at 17%, with corresponding P/E ratios of 55, 37, and 25 times [4].