Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.47 RMB [7][5]. Core Insights - The company reported a revenue of 34.92 billion RMB for Q1-Q3 2025, a year-over-year decrease of 3.27%, while net profit attributable to shareholders increased by 43.60% to 6.16 billion RMB [1][2]. - The third quarter of 2025 saw a revenue of 11.41 billion RMB, down 12.85% year-over-year but up 2.30% quarter-over-quarter, driven by growth in security services [1][2]. - The company is expected to benefit from increasing AI demand, which is anticipated to accelerate growth in its CDN, edge computing, and security services [1][3]. Financial Performance - The gross profit margin for the first three quarters of 2025 improved by 4.07 percentage points year-over-year to 34.52% [2]. - The net profit margin for the same period was 17.64%, reflecting a significant increase of 5.76 percentage points year-over-year [2]. - The company achieved an investment income of 1.55 billion RMB from the disposal of subsidiaries, contributing to the net profit growth [2]. Business Segments - For the first three quarters of 2025, the CDN and edge computing business generated 21.77 billion RMB in revenue, while the security and value-added services business contributed 10.31 billion RMB, accounting for 29.52% of total revenue [3]. - The gross margin for the security and value-added services business improved to 78.90%, up 1.67 percentage points from the first half of 2025 [3]. Strategic Opportunities - The company is focusing on global expansion and capitalizing on AI industry opportunities, with a service network covering over 200 countries [4]. - The company is enhancing its edge computing capabilities by developing core products such as edge AI gateways and applications [4]. Earnings Forecast and Valuation - The revenue forecast for 2025-2027 is set at 54.55 billion RMB, 61.50 billion RMB, and 69.94 billion RMB respectively [5]. - The net profit forecast for the same period is adjusted to 8.33 billion RMB, 9.75 billion RMB, and 11.83 billion RMB, with corresponding EPS of 0.34 RMB, 0.40 RMB, and 0.48 RMB [5].