Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 5.69 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 6.0%. However, the net profit attributable to shareholders decreased by 8.6% to 350 million yuan, while the net profit excluding non-recurring items was 290 million yuan, down 1.1% year-on-year [2][5] - In Q3 2025, the company achieved a revenue of 2.16 billion yuan, which is a significant year-on-year increase of 29.2%, although it decreased by 10.4% compared to the previous quarter. The net profit attributable to shareholders was 90 million yuan, a slight decrease of 0.3% year-on-year, and a substantial decline of 64.4% quarter-on-quarter [2][5] - The gross profit margin for the first three quarters of 2025 was 19.84%, down 2.04 percentage points year-on-year, while the gross profit margin for Q3 2025 was 16.14%, down 4.99 percentage points year-on-year and 6.92 percentage points quarter-on-quarter, primarily due to a higher proportion of hardware equipment deliveries [10] - The company’s operating cash flow for the first three quarters of 2025 reached 1.347 billion yuan, turning positive year-on-year, although Q3 2025 saw a decline of 3.9% year-on-year and a significant drop of 91.2% quarter-on-quarter [10] Summary by Sections Financial Performance - For the first three quarters of 2025, total revenue was 5.69 billion yuan, with a year-on-year growth of 6.0%. The net profit attributable to shareholders was 350 million yuan, down 8.6% year-on-year, and the net profit excluding non-recurring items was 290 million yuan, down 1.1% year-on-year [2][5] - In Q3 2025, the company reported a revenue of 2.16 billion yuan, a year-on-year increase of 29.2%, but a quarter-on-quarter decrease of 10.4%. The net profit attributable to shareholders was 90 million yuan, a year-on-year decrease of 0.3% and a quarter-on-quarter decrease of 64.4% [2][5] Cost and Expenses - The gross profit margin for the first three quarters of 2025 was 19.84%, down 2.04 percentage points year-on-year. In Q3 2025, the gross profit margin was 16.14%, down 4.99 percentage points year-on-year and 6.92 percentage points quarter-on-quarter [10] - The total expense ratio for the first three quarters of 2025 was 14.08%, down 2.07 percentage points year-on-year. In Q3 2025, the total expense ratio was 12.25%, down 4.32 percentage points year-on-year and 1.03 percentage points quarter-on-quarter [10] Inventory and Cash Flow - As of the end of Q3 2025, the company's inventory reached 1.343 billion yuan, an increase of 99.1% year-on-year and 43.6% quarter-on-quarter. The contract liabilities were 147 million yuan, down 12.2% year-on-year and up 36.6% quarter-on-quarter [10] - The company’s asset-liability ratio at the end of Q3 2025 was 54.19%, an increase of 5.37 percentage points year-on-year and a decrease of 2.32 percentage points quarter-on-quarter [10]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [7]. Core Views - The company reported a revenue of 3.52 billion yuan for the first half of 2025, a decrease of 4.6% year-on-year, with a net profit attributable to shareholders of 270 million yuan, down 11.0% year-on-year [2][5]. - The second quarter of 2025 saw a revenue of 2.41 billion yuan, a decline of 9.8% year-on-year, and a net profit of 240 million yuan, down 16.4% year-on-year [2][5]. - The company is experiencing a significant acceleration in its frontier technology innovation business, with a revenue increase of 340.6% year-on-year in this segment [10]. Summary by Sections Financial Performance - In the first half of 2025, the digital infrastructure segment generated a revenue of 1.749 billion yuan, up 25.0% year-on-year, while the frontier technology innovation business brought in 704 million yuan, up 340.6% year-on-year [10]. - The gross margin for the first half of 2025 was 22.12%, a slight decrease of 0.10 percentage points year-on-year [10]. - The company reported a significant increase in cash flow from operations, reaching 1.211 billion yuan in the first half of 2025, indicating improved collection efficiency [10]. Orders and Inventory - As of the end of Q2 2025, the company had a backlog of orders amounting to 4.67 billion yuan, representing a year-on-year growth of approximately 27% [10]. - The inventory at the end of Q2 2025 was 935 million yuan, showing a substantial increase of 95.4% year-on-year [10]. Future Outlook - The company expects that the net profit attributable to shareholders for 2025, excluding its subsidiary Yili Technology, could reach approximately 864 million yuan, corresponding to a price-to-earnings ratio of about 24 times [10].