Performance Review - The company's 3Q25 performance was below expectations, with revenue of 2.384 billion yuan for the first three quarters, a year-on-year decrease of 0.63%, and a net profit attributable to shareholders of 89 million yuan, down 14.66% year-on-year [1] - In 3Q25, revenue was 699 million yuan, a year-on-year decline of 10.26%, and net profit attributable to shareholders was 20 million yuan, down 44.34% year-on-year, primarily due to pressure on the clean appliance business [1] - The water health business continued to grow, with a significant increase in retail sales of water dispensers, up 69.5% year-on-year, while the clean appliance business faced challenges, with online retail sales down 11.9% year-on-year [1] Financial Analysis - The company's gross margin reached 32.0% in 3Q25, an increase of 0.8 percentage points year-on-year, driven by growth in the water health business and ongoing cost reduction efforts [2] - The sales, management, and R&D expense ratios increased by 1.9, 0.6, and 1.1 percentage points year-on-year, respectively, influenced by declining revenue and increased R&D investment [2] - The net profit margin for 3Q25 was 2.9%, a decrease of 1.8 percentage points year-on-year [2] Development Trends - The company is focusing on product innovation and expanding its SKU matrix in the water health business, aiming to leverage the brand strength of existing products to drive growth in other categories [3] - In the clean appliance business, the company is accelerating global expansion by targeting popular products to enter overseas markets, which is expected to create new growth momentum [3] Profit Forecast and Valuation - Due to competitive pressures in the clean appliance business, the company has lowered its net profit forecasts for 2025 and 2026 by 9% and 8% to 150 million and 180 million yuan, respectively [4] - The current stock price corresponds to 30.0 and 25.7 times the projected P/E ratios for 2025 and 2026 [4] - The target price has been reduced by 8% to 11.37 yuan, implying a potential upside of 13.5% from the current stock price [4]