Core Viewpoint - The company reported a strong financial performance for 9M25, with revenue of 6.08 billion yuan, a year-on-year increase of 26%, and a net profit of 820 million yuan, up 25% year-on-year, driven by the mass production of 224G high-speed communication cables and a rapid increase in demand for new energy charging guns [1] Financial Performance - For Q3 25, the company achieved revenue of 2.14 billion yuan, a year-on-year increase of 24% but a quarter-on-quarter decrease of 2%, with net profit at 264 million yuan, up 12% year-on-year but down 14% quarter-on-quarter due to a transition phase in server shipments from GB200 to GB300 [1] - The overall gross margin for 9M25 was stable at 32.08%, a slight decrease of 0.77 percentage points year-on-year, while Q3 25 gross margin was 31.38%, down 0.90 percentage points year-on-year [3] Business Growth Drivers - The company is focusing on the strategic direction of "electronic communication + new energy power," with a robust product lineup in high-speed communication cables, including a full range of 1.6T/800G/224G cables and ongoing research for the next generation 448G cables [1] - The revenue from high-speed communication cables in 1H25 reached 466 million yuan, representing a significant year-on-year growth of 397.80% [1] Equipment and Capacity Expansion - As of September 25, 2025, the company had five imported foaming core wire extruders in normal production, with expectations to increase this number to over 20 by the end of the year, which is anticipated to support a new round of business growth [2] Market Outlook - NVIDIA's positive guidance for GPU shipments in 2026 is expected to boost demand for cabinet copper cables, with projected copper core line market space of approximately 3.2 billion yuan in 2025 and 6.7 billion yuan in 2026, reflecting a 106% year-on-year increase [4] - The company’s downstream clients include leading firms in the copper connection industry, which positions it to benefit from external demand spillover [4] Profit Forecast and Valuation - The company is expected to benefit from the growing demand for AI short-distance interconnects, with projected net profits of 1.224 billion yuan, 2.178 billion yuan, and 2.614 billion yuan for 2025-2027 [5] - The target price for the company is set at 43.21 yuan per share, based on a 25x PE ratio for 2026, reflecting an increase from the previous target of 37.88 yuan per share [5]

Group 1: Overall Performance - In the first three quarters of 2025, the company achieved a total revenue of 106.80 billion yuan, a year-on-year increase of 27.50% [4] - The net profit attributable to shareholders was 6.80 billion yuan, reflecting a year-on-year growth of 65.26% [4] - The net cash flow from operating activities reached 2.77 billion yuan, up 212.76% year-on-year [4] - The overall gross margin was 34.08%, slightly down from 35.26% in the same period last year [4] Group 2: Quarterly Performance - In Q3 2025, the company reported a revenue of 40.31 billion yuan, a year-on-year increase of 20.93% [4] - The net profit for Q3 was 2.28 billion yuan, a decrease of 11.49% compared to the previous year [4] - The gross margin for Q3 was 35.56% [4] Group 3: Revenue Breakdown by Segment - Network equipment revenue for the first three quarters was 92.68 billion yuan, a year-on-year increase of 37.90% [4] - Network security products generated 3.41 billion yuan, up 11.77% year-on-year [4] - Cloud desktop revenue was 3.70 billion yuan, showing a slight decrease [4] Group 4: Revenue Breakdown by Region - Domestic revenue reached 88.44 billion yuan, a year-on-year increase of 23.96% [4] - Overseas revenue was 47.81 billion yuan, reflecting a year-on-year growth of 18.36% [4] Group 5: Market Position - The company ranked first in China's optical Ethernet market and third in both Ethernet switch and data center switch market shares [6] - In the first half of 2025, the company held the top position in the market share for 200G/400G data center switches [6] Group 6: Future Outlook - The demand for data center switches is expected to remain strong, with optimistic projections for Q4 and 2026 [7] - The company anticipates an increase in the proportion of 800G products in the data center switch market next year [9] - The overseas business is expected to continue its steady growth, focusing on Southeast Asia, Middle East, and Europe [10]