Core Viewpoint - The company reported a steady revenue growth in the first three quarters of 2025, with a significant increase in net profit, indicating strong operational resilience and improved profitability [1][2][5]. Revenue Performance - In the first three quarters of 2025, the company achieved a revenue of 1.933 billion yuan, a year-on-year increase of 0.85%. Quarterly revenue showed fluctuations: Q1 down 5.60%, Q2 up 15.76%, and Q3 down 7.55% [1][2]. - The net profit attributable to shareholders for the first three quarters was 347 million yuan, up 16.92% year-on-year, with Q3 net profit reaching 126 million yuan, a 40.87% increase year-on-year [1][2]. Profitability Improvement - The gross profit margin for the first three quarters was 38.97%, an increase of 2.88 percentage points year-on-year. The net profit margin was 18.03%, up 2.34 percentage points year-on-year [3]. - In Q3, the gross profit margin and net profit margin were particularly strong at 43.73% (up 8.44 percentage points) and 20.46% (up 6.87 percentage points) respectively [3]. Cash Flow and Financial Health - The operating cash flow for the first three quarters was a net outflow of 419 million yuan, which was an improvement of 111 million yuan year-on-year. Q3 saw a net inflow of 102 million yuan, a 53.64% increase year-on-year [4]. - As of the end of Q3 2025, the company had cash and cash equivalents of 594 million yuan, indicating a relatively strong liquidity position [4]. Business Strategy and Growth Prospects - The company is a leading player in urban rail transit design with strong competitive advantages and operational resilience. It is actively exploring new business lines, including energy-saving renovations and low-altitude economy projects [5]. - Revenue projections for 2025-2027 are optimistic, with expected revenues of 3.008 billion yuan, 3.266 billion yuan, and 3.519 billion yuan, representing year-on-year growth rates of 9.5%, 8.6%, and 7.7% respectively [5].

Investment Rating - The report assigns a "Buy-A" rating to the company, maintaining this rating with a target price of 20 yuan over the next six months [6]. Core Insights - The company reported a robust performance in Q2 2025, with a year-on-year revenue increase of 5.31% to 1.317 billion yuan and a net profit increase of 6.58% to 221 million yuan [2][3]. - The core design business saw a slight revenue growth of 0.93% year-on-year, while the engineering contracting business experienced significant growth of 73.98%, increasing its revenue share to 16.07% [2]. - The company is focusing on expanding its business into energy-saving renovations and has begun to explore the integration of low-altitude economy with rail transit projects [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 1.317 billion yuan, with Q2 showing a remarkable growth of 15.76% compared to Q1, which had a decline of 5.60% [2]. - The gross profit margin for H1 2025 was 36.74%, with the main design business margin increasing to 41.68% [3]. - Operating cash flow improved, with a net outflow of 521 million yuan, which is a reduction of 75 million yuan compared to the previous year [3]. Business Development - The company is recognized as a leading urban rail transit design firm in A-shares, with strong competitive advantages and resilience in operations [4]. - It is actively pursuing new business lines, including low-altitude economy services, which encompass various areas such as aerial photography and data services [4]. Future Projections - The company is expected to achieve revenues of 3.008 billion yuan, 3.266 billion yuan, and 3.519 billion yuan from 2025 to 2027, with corresponding net profits of 543 million yuan, 598 million yuan, and 652 million yuan [11][12]. - The projected PE ratios for the next three years are 12.0, 10.9, and 10.0, indicating a favorable valuation outlook [10].