Core Insights - The company reported significant year-on-year growth in its Q3 2025 performance, with revenue reaching 14.109 billion yuan, up 8.36%, and net profit attributable to shareholders at 412 million yuan, up 61.57% [1] - In Q3 2025, the company achieved revenue of 4.837 billion yuan, a year-on-year increase of 7.93%, but a quarter-on-quarter decrease of 8.76%. Net profit for the same period was 161 million yuan, showing a remarkable year-on-year increase of 227.70% [1] - The company experienced a continuous increase in orders for wire and cable products, with a gross margin improvement noted in H1 2025 [1] Revenue and Profit Growth - In H1 2025, the company's power products generated revenue of 6.315 billion yuan, reflecting a year-on-year increase of 14.85%, with a gross margin of 11.37%, up 1.37 percentage points [1] - The company reported a historical high in the amount of winning bids for grid projects, which increased by 136% year-on-year, and a 113% year-on-year increase in the volume of new products shipped [1] Operational Efficiency and Innovation - The company has improved production efficiency and product quality through process re-engineering and equipment upgrades, with the capacity utilization rate steadily increasing [1] - The high polymer materials segment also saw revenue growth, reaching 2.654 billion yuan in H1 2025, up 5.70%, although the gross margin slightly decreased to 14.48% [1][2] Strategic Developments - The company is focusing on high-end intelligent equipment cables, with a leading position in robot cable technology, having developed a flexible motion robot cable with a bending life exceeding 30 million cycles [2] - The company has successfully developed domestic leading products such as high-voltage submarine cable insulation materials, with 32 new projects and 23 patents authorized [2] Future Outlook - The company is expected to see net profits of 539 million yuan, 663 million yuan, and 900 million yuan for the years 2025 to 2027, representing year-on-year growth rates of 57.8%, 23.1%, and 35.7% respectively, with EPS projected at 0.53, 0.65, and 0.89 yuan [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 17.28 CNY based on a 32x P/E ratio for 2025 [2][5]. Core Insights - The company is experiencing growth in traditional business segments while innovating in the robotics cable sector. The revenue from the power cable segment reached 11.75 billion CNY in 2024, marking a 32.29% year-on-year increase, with production volume hitting a historical high [9]. - The company is positioned as a leader in high polymer materials, with a revenue of 5.185 billion CNY in 2024, reflecting a 6.42% increase. The company has successfully developed ultra-high voltage cable materials that are now being used in various domestic and international projects [9]. - The robotics cable division has established a strong technical foundation, with products capable of exceeding 30 million bending cycles, showcasing international leadership in technology [9]. Financial Forecast and Analysis - The company is projected to achieve earnings per share (EPS) of 0.54 CNY, 0.69 CNY, and 0.86 CNY for the years 2025, 2026, and 2027 respectively. The previous estimates for 2025 and 2026 were 0.81 CNY and 0.97 CNY, respectively, adjusted due to overall industry pressures [2]. - Revenue is expected to grow from 15.121 billion CNY in 2023 to 25.224 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 7.8% [4][11]. - The company's gross margin is projected to improve slightly from 11.3% in 2024 to 12.1% in 2027, while net profit margin is expected to increase from 1.9% to 3.5% over the same period [4][11]. Market Performance - The company's stock has shown strong performance, with a 52-week high of 21.21 CNY and a low of 6.13 CNY. The stock price as of May 7, 2025, was 15.78 CNY [5]. - The company has outperformed the market, with absolute performance of 82.05% over the past 12 months compared to the Shanghai and Shenzhen 300 Index [6].

Core Viewpoint - The company reported its 2024 annual results and Q1 2025 results, showing revenue growth but a significant decline in net profit for 2024, while Q1 2025 showed mixed results in revenue and net profit [1][2]. Group 1: Financial Performance - In 2024, the company achieved revenue of 17.761 billion yuan, a year-on-year increase of 17.46%, but the net profit attributable to shareholders was 341 million yuan, a decrease of 38.57% [1]. - For Q1 2025, the company reported revenue of 3.970 billion yuan, a year-on-year increase of 4.43% but a quarter-on-quarter decrease of 16.25%. The net profit attributable to shareholders was 82 million yuan, a year-on-year increase of 23.05% but a quarter-on-quarter decrease of 5.23% [1]. Group 2: Business Segments - The wire and cable segment continued to grow, with revenue from power products reaching 11.747 billion yuan in 2024, an increase of 32.29%, although the gross margin decreased by 2.32 percentage points to 9.92% [1]. - The polymer materials segment also saw revenue growth, achieving 5.185 billion yuan in 2024, a year-on-year increase of 6.42%, with a gross margin of 13.24%, down by 3.46 percentage points [2]. - The company successfully launched its high-end equipment project in Qingdao, with a focus on leading technology in photovoltaic cable production and a successful implementation of its north-south linkage strategy [1]. Group 3: Innovation and Development - The company has been advancing its capacity in the polymer materials sector, with sales volume reaching 528,700 tons in 2024, a year-on-year increase of 9.31%, and a monthly sales peak of 55,500 tons [2]. - The company has made significant progress in R&D, completing multiple key new product developments and advancing major projects in the new materials sector, including the successful launch of the silane integration project [2]. - The company has also established a robotics cable division since 2016, achieving mass delivery of flexible robotic cables in 2024, which meet international standards for durability [2]. Group 4: Investment Outlook - The company is expected to see net profit attributable to shareholders of 493 million yuan, 641 million yuan, and 838 million yuan for 2025-2027, representing year-on-year growth of 44.4%, 30.2%, and 30.7% respectively, with corresponding EPS of 0.49, 0.63, and 0.83 yuan [3].