Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 12.198 billion yuan for the first three quarters of 2025, a year-on-year decline of 3.22%, with a net profit attributable to shareholders of 2.979 billion yuan, down 8.72% year-on-year [2] - The report indicates that the traditional business faced temporary pressure, while emerging businesses continued to expand [3] - The company is focusing on product innovation and brand image enhancement in the electrical connection business, while the smart electrical lighting business showed resilience [3] - The company is actively pursuing international expansion and has established good partnerships with major clients in the industry [3] Revenue Summary - The company’s revenue for Q3 2025 was 4.030 billion yuan, a year-on-year decrease of 4.44%, but the decline in revenue has narrowed compared to previous quarters [2] - The cash flow from operating activities for the first three quarters of 2025 was 3.621 billion yuan, an increase year-on-year [2] Profitability Summary - The gross profit margin for Q3 2025 was 41.68%, a decrease of 1.79 percentage points year-on-year, while the net profit margin was 22.81%, down 1.49 percentage points year-on-year [4] - The company has maintained effective cost control, with a slight decrease in the expense ratio [4] Investment Recommendations - The company is expected to gradually replicate its competitive advantages in new business areas such as LED lighting and renewable energy, moving towards becoming a giant in the consumer electrical sector [5] - Revenue forecasts for 2025-2027 are adjusted to 16.342 billion, 17.503 billion, and 18.693 billion yuan respectively, with EPS estimates of 2.22, 2.41, and 2.49 yuan [5] - The company maintains a "Buy" rating based on the adjusted earnings forecasts and current market conditions [5]