Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's Q3 performance exceeded expectations, with a revenue of 3.369 billion yuan for the first three quarters of 2025, a year-on-year decrease of 1.19%. However, Q3 alone saw a revenue of 1.445 billion yuan, representing a year-on-year increase of 25.12% [1]. - The company is expected to benefit from the growth of its new business segments, particularly in overseas markets, which are anticipated to contribute to stable revenue growth [2]. - The net profit margin remains robust, with a Q3 net profit margin of 23.25%, an increase of 0.91 percentage points year-on-year [3]. Summary by Sections Financial Performance - For Q1 to Q3 of 2025, the company achieved a gross margin of 39.89%, down 6.08 percentage points year-on-year. The Q3 gross margin was 37.67%, a decrease of 11.75 percentage points year-on-year [3]. - The company’s net profit for the first three quarters was 732 million yuan, a year-on-year decrease of 7.48%, while Q3 net profit reached 336 million yuan, up 30.21% year-on-year [1][3]. Business Development - The company is expanding its new business initiatives, particularly in renewable energy projects in regions with weak power grids, such as Africa and Latin America [2]. - The launch of a smart ultrasonic water meter factory in South Africa marks a significant step in local manufacturing and enhances the company's global brand influence [2]. Profit Forecast - The company is projected to see a net profit of 1.019 billion yuan in 2025, with expected growth rates of 1.7%, 17.2%, and 15.1% for the years 2025, 2026, and 2027 respectively [4][5].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][7][8] Core Views - The company reported a revenue of 1.924 billion yuan for the first half of 2025, a year-on-year decrease of 15%, and a net profit attributable to shareholders of 396 million yuan, down 26% year-on-year. The gross margin was 41.6%, down 2.6 percentage points, and the net margin was 20.5%, down 3.1 percentage points [3][5] - The company has made significant progress in its overseas expansion, including the launch of a smart ultrasonic water meter factory in South Africa and successful bids for distribution products in Asia, Africa, and Latin America [5][6] - Domestic business remains stable with over 400 million yuan in orders secured in the first half of the year, including significant wins in power metering and distribution equipment [6] - The company is investing in new energy solutions, having developed key equipment and systems for microgrid solutions, with successful bids in Africa and Latin America [6] Financial Summary - The company expects net profits for 2025-2027 to be 1.016 billion, 1.165 billion, and 1.3 billion yuan respectively, with year-on-year growth rates of 1.4%, 14.7%, and 11.7% [3][7] - Earnings per share (EPS) are projected to be 2.09, 2.40, and 2.68 yuan for the same period, with corresponding valuations of 13.4, 11.6, and 10.4 times [3][7] - The company reported a second-quarter revenue of 1.14 billion yuan, a year-on-year decrease of 15% but a quarter-on-quarter increase of 45%, with a net profit of 255 million yuan, down 20% year-on-year but up 81% quarter-on-quarter [5]