Investment Rating - The report initiates coverage with a rating of "Buy" for Ningbo Huaxiang [1] Core Insights - The company reported impressive non-GAAP performance in Q3 2025, with a significant increase in net profit driven by the sale of European operations and growth in domestic brand sales [3][6] - The company is accelerating its transformation towards lightweight and intelligent products, with revenue from self-owned brands expected to exceed 40% of total revenue by 2025 [4] - The divestiture of European subsidiaries has allowed the company to focus on new product lines and markets, particularly in North America, while also establishing a foothold in the humanoid robotics sector [5][7] Financial Performance - In Q3 2025, the company achieved operating revenue of 6.345 billion yuan, a year-on-year decrease of 3.01%, while net profit attributable to shareholders reached 462 million yuan, up 149.27% [3] - The non-GAAP net profit was 471 million yuan, reflecting a year-on-year growth of 163.06% [3] - Revenue projections for 2025-2027 are estimated at 28.89 billion, 32.02 billion, and 35.04 billion yuan, with year-on-year growth rates of 9.8%, 10.8%, and 9.42% respectively [7][9] Strategic Initiatives - The company has completed the divestiture of its European subsidiaries, which has improved its financial outlook and allowed for a more focused operational strategy [5] - The establishment of a joint venture in humanoid robotics is expected to create a new growth avenue, with plans to produce full-size bipedal robots over the next three years [5][7] - The company is actively pursuing partnerships with leading domestic brands to capitalize on the growth of the domestic automotive market [4]