Core Viewpoint - Zhejiang Natural's Q3 2025 revenue, net profit attributable to parent, and net profit excluding non-recurring items were 133 million, 37 million, and 8 million yuan respectively, showing year-on-year declines of 30.38%, 40.63%, and 68.23% due to tariff impacts affecting orders from Cambodia [1] Group 1: Q3 Performance Analysis - The decline in Q3 revenue is primarily attributed to tariff impacts leading to pressure on orders from Cambodia [1] - Short-term outlook for Q4 is expected to improve compared to Q3, driven by a turning point in inventory destocking for the main business of outdoor inflatable mattresses and new customer orders contributing to growth [1] Group 2: Medium to Long-term Growth Prospects - In the medium term, water sports products are anticipated to become a new growth point, leveraging the Vietnam base, with expectations of maintaining high growth this year [1] - In the long term, the company demonstrates strong capabilities in R&D and cost control in new materials, with the TPU penetration rate expected to continue increasing [1] - The overseas outdoor equipment market remains in a growth phase, with the company continuing to expand production and significant potential for increasing overseas market share [1]

Core Viewpoint - The company is a leading outdoor inflatable mattress manufacturer with solid profitability, driving growth through expanding existing product lines and accelerating new product categories, resulting in better-than-expected performance [1] Group 1: Revenue and Profit Forecast - The company is projected to achieve revenue of 1 billion and net profit of 185 million in 2024, with expectations of returning to growth after inventory depletion and successfully onboarding large clients in the new energy sector [2] - The company anticipates a compound annual growth rate (CAGR) of over 30% in revenue from 2025 to 2027, driven by both existing product line expansion and new product category growth [2] Group 2: Domestic Factory Performance - The company holds a significant market share in the inflatable mattress category, with expectations for steady growth following inventory depletion in the first half of 2023 and a recovery in the second half of 2024 [3] - Continuous customer expansion efforts, alongside the ramp-up of new energy vehicles, are expected to contribute positively to traditional product growth, exceeding market expectations [3] Group 3: International Factory Developments - The company is expanding into new categories such as insulated hard cases and surfboards, leveraging its existing customer base and the scarcity of overseas production capacity [4] - The company has established strong customer relationships, particularly in Vietnam and Cambodia, which are expected to facilitate order growth despite concerns over tariffs affecting U.S. orders [4] Group 4: Performance Indicators and Catalysts - Key performance indicators include financial reports and order outlooks, with catalysts being better-than-expected performance and order forecasts in the second half of 2025 [7][8] Group 5: Profitability and Valuation - Revenue projections for 2025-2027 are 1.27 billion, 1.87 billion, and 2.4 billion respectively, with year-on-year growth rates of 27%, 47%, and 29% [9] - The company is expected to maintain strong profitability compared to peers, with a projected price-to-earnings ratio of 16.1, 10.7, and 8.3 for the respective years [9]