Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 12-month target price of 28.35 yuan [5][8]. Core Insights - The company experienced a revenue decline of 1.56% year-on-year in the first three quarters of 2025, with total revenue reaching 3.761 billion yuan. The net profit attributable to shareholders decreased by 11.59% to 806 million yuan [1][2]. - In Q3 2025, the company reported a significant revenue drop of 20.41% year-on-year, amounting to 1.014 billion yuan, and a net profit decline of 34.74% to 201 million yuan [1][2]. - The company is actively increasing its R&D investments and preparing for production and inventory, with R&D expenses rising by 49.97% year-on-year [3][4]. Financial Performance - For the first three quarters of 2025, the company's gross margin was 38.24%, a decrease of 0.28 percentage points year-on-year, while the net margin was 21.62%, down by 2.5 percentage points [3]. - The company’s revenue from the aerospace new materials segment was 3.713 billion yuan, down 1.55% year-on-year, and the net profit from this segment was 853 million yuan, down 10.6% [2]. - The company’s total assets are projected to grow from 8.647 billion yuan in 2023 to 12.964 billion yuan by 2027, indicating a strong growth trajectory [12]. Future Projections - The report forecasts the company's net profit for 2025, 2026, and 2027 to be 1.219 billion yuan, 1.369 billion yuan, and 1.556 billion yuan, respectively, with growth rates of 5.7%, 12.3%, and 13.7% [5][12]. - The company is focusing on emerging industries, particularly in the low-altitude economy sector, with its subsidiary developing eVTOL aircraft components [4].

Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 12-month target price of 53.29 CNY [6]. Core Views - The company has shown a strong revenue recovery, achieving 201 million CNY in revenue for H1 2025, a year-on-year increase of 180.16%. The net profit attributable to shareholders reached 57 million CNY, compared to a loss of 24 million CNY in the same period last year [1]. - The company is experiencing a rapid recovery in downstream demand, with significant increases in projects and orders. The gross margin for H1 2025 was 68.04%, up 13.35 percentage points year-on-year, and the net margin was 28.15%, compared to -33.81% in the same period last year [1]. - The company is focusing on R&D, with a 45% increase in R&D expenditure to 53 million CNY in H1 2025, aligning with trends in miniaturization, lightweight, high integration, and low-cost equipment [2]. Financial Summary - The company is projected to achieve net profits of 115 million CNY, 171 million CNY, and 232 million CNY for the years 2025, 2026, and 2027, respectively, with growth rates of 48.3% and 36.2% in the following years [3]. - The company’s revenue is expected to grow from 426 million CNY in 2025 to 737 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of 29.2% [9]. - The company’s accounts receivable increased by 25% to 615 million CNY, primarily due to the growth in business scale [2].