Core Insights - The company reported a revenue of 385 million for the first three quarters of 2025, representing a year-on-year increase of 8.70%, and a net profit attributable to shareholders of 101 million, up 2.23% year-on-year [1] - In Q3 2025, the company achieved a revenue of 102 million, a significant year-on-year increase of 30.75%, with a net profit of 25 million, reflecting a 0.50% increase year-on-year [1] Financial Performance - The gross profit margin for the first three quarters of 2025 was 67.46%, an increase of 0.91 percentage points year-on-year, while the net profit margin was 26.10%, a decrease of 1.71 percentage points year-on-year [2] - In Q3 2025, the gross profit margin dropped to 63.96%, down 4.51 percentage points year-on-year, and the net profit margin fell to 24.26%, a decline of 6.96 percentage points year-on-year [2] - The overall expense ratio remained stable, with a slight decrease of 0.13 percentage points year-on-year for the first three quarters of 2025 [2] Product Development and Market Position - The company is advancing the localization of mechanical products and developing a high-end scientific instrument platform, including new products like customized measurement and control analysis systems [3] - The company is actively expanding its sensor product line, which includes various types of sensors suitable for harsh environments, enhancing its competitive edge [3] - Strategic partnerships are being formed, such as with Nantong Zhenkang for collaborative innovation in testing control platforms, and discussions with Nidec for technical cooperation in precision transmission products [3] Investment Outlook - The company maintains a "buy" rating, with projected net profits of 159 million and 206 million for 2025 and 2026, respectively, corresponding to price-to-earnings ratios of 39x and 30x [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant increase in performance for 2024, with revenue reaching 502 million, a year-on-year increase of 32.79%, and a net profit attributable to shareholders of 122 million, up 38.90% [6][12]. - The company continues to see stable growth in revenue and performance in Q1 2025, with revenue of 109 million, a year-on-year increase of 4.25%, and a net profit of 29 million, up 5.64% [6][12]. - The gross profit margin has improved consistently, with a gross margin of 66.37% in 2024, an increase of 0.9 percentage points year-on-year, and further rising to 68.66% in Q1 2025 [12][12]. - The company is focusing on domestic substitution of mechanical products and aims to build a platform for high-end scientific research instruments, which is expected to open up growth opportunities [12][12]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 502 million, with a gross profit of 333 million, resulting in a gross margin of 66% [16]. - The net profit for 2024 was 121 million, with an EPS of 0.88 [16]. - For Q1 2025, the company reported revenue of 109 million and a net profit of 29 million, indicating a stable growth trajectory [6][12]. Business Development - The company has seen growth across multiple product lines, including structural mechanics testing systems and electrochemical workstations, with sales revenue increases of 35.79% and 52.26% respectively [12][12]. - The company is enhancing its R&D efforts, with a 49.40% increase in R&D investment in 2024, amounting to 61.37 million, which represents 12.22% of total revenue [12][12]. Market Position - The company has a strong competitive position in the domestic market for high-end scientific research instruments, with plans to expand product categories and applications [12][12]. - The company is expected to achieve net profits of 170 million and 230 million in 2025 and 2026 respectively, with corresponding P/E ratios of 34x and 25x [12][12].