Core Viewpoint - The company reported a revenue of 1-3Q25 at 1.034 billion yuan, showing a year-on-year increase of 2.13%, with a single-quarter revenue of 391 million yuan in 3Q, reflecting a year-on-year growth of 18.26% and a quarter-on-quarter increase of 14.11% [1] - The European electric bicycle industry is entering a new growth cycle, and the 3Q25 performance exceeded expectations [1] Financial Performance - The net profit attributable to the parent company for 1-3Q25 was 67 million yuan, corresponding to an earnings per share of 0.28 yuan, representing a year-on-year increase of 30.51%, with a net profit of 35 million yuan in 3Q [1] - The gross margin for 1-3Q25 was 21.8%, down 3.9 percentage points year-on-year, while the gross margin for 3Q was 21.6%, up 1.5 percentage points quarter-on-quarter [1] - The net profit margin for 3Q was 8.9%, reflecting a quarter-on-quarter increase of 5.9 percentage points [1] Expense Ratios - The sales expense ratio for 1-3Q25 was 3.2%, down 3.3 percentage points year-on-year [1] - The management expense ratio was 7.4%, down 1.7 percentage points year-on-year [1] - The R&D expense ratio was 4.0%, down 2.6 percentage points year-on-year, and the financial expense ratio was -0.4%, down 2.6 percentage points year-on-year [1] Market Trends - The demand for electric bicycles is gradually recovering, with the company's revenue and profit showing an upward turning point [2] - According to bikeeurope, the total sales of bicycles and electric bicycles in Germany reached 885,000 units in the first quarter of this year, an increase of nearly 11% year-on-year, indicating a stabilization in downstream demand [2] Profit Forecast and Valuation - The company maintains its 2025 profit forecast while raising the 2026 profit forecast by 32.3% to 200 million yuan [3] - The current stock price corresponds to a 32.6 times price-to-earnings ratio for 2026, with a target price of 35.0 yuan, reflecting a 25.2% upside potential compared to the current stock price [3]