Core Insights - Company reported a revenue of 6.539 billion with a year-on-year growth of 8.15% and a net profit of 86 million, showing a significant increase of 529.94% [1] - In Q3 alone, revenue reached 2.386 billion, marking a year-on-year increase of 16.10% and a quarter-on-quarter increase of 13.51% [1] - The improvement in profitability is attributed to revenue growth, enhanced gross margin, and effective control of operating expenses [1] Financial Performance - Gross margin for the first three quarters was 11.99%, an increase of 0.25 percentage points compared to the same period last year [1] - Operating expense ratio decreased by 1.99 percentage points year-on-year, further supporting profit growth [1] Market Expansion - Company has intensified efforts to explore both domestic and international markets, deepening collaboration with core clients [1] - Over 70% of revenue in the first three quarters came from overseas, with a year-on-year growth exceeding 40%, indicating strong overseas development momentum [1] Production Capacity - Company has nearly 90 SMT production lines across four major production bases, enhancing high-precision and high-efficiency assembly capabilities [2] - The second phase of the Vietnam factory has been successfully launched, and the North American cooperation factory project is progressing [2] Business Diversification - The company is experiencing positive developments in diversified business areas due to accelerated global data center construction, AI computing demand, and automotive intelligence trends [2] - Significant recovery in revenue from the AP series in the network communication product line, with substantial growth in server output and shipments [2] Future Outlook - Company aims to leverage historical opportunities presented by global digitalization and intelligence trends, focusing on "technology + capacity" dual drivers [2] - Continued emphasis on core business areas such as network communication, data communication, automotive electronics, and EMS for long-term high-quality development [2]

Investment Rating - The report maintains an "Outperform" rating for the company, projecting a target price of 108.78 RMB based on a 2025 PE of 80x [3][8]. Core Insights - The company has shown strong business performance in the first three quarters of 2025, with revenue reaching 10.68 billion RMB, a year-on-year increase of 27.50%, and net profit attributable to shareholders at 680 million RMB, up 65.26% [3][8]. - The third quarter of 2025 saw revenue of 4.03 billion RMB, representing a year-on-year growth of 20.93%, although it experienced a quarter-on-quarter decline of 2.00% [3][8]. - The net profit attributable to shareholders for Q3 was 228 million RMB, down 11.49% year-on-year and 33.79% quarter-on-quarter, while the net profit after non-recurring items was 223 million RMB, a decrease of 9.50% year-on-year and 34.07% quarter-on-quarter [3][8]. Financial Summary - Revenue projections for 2025-2027 are 14.66 billion RMB, 17.86 billion RMB, and 21.27 billion RMB, respectively, with net profit attributable to shareholders expected to be 1.08 billion RMB, 1.59 billion RMB, and 2.13 billion RMB [3][8]. - The earnings per share (EPS) for the same period are projected at 1.36 RMB, 2.00 RMB, and 2.67 RMB [3][8]. - The gross profit margin for Q3 was 35.56%, showing an increase of 0.78 percentage points year-on-year and 5.02 percentage points quarter-on-quarter [3][8]. Business Development - The company benefits from the rapid development of data communication switches, and a new equity incentive plan was introduced in September 2025, aiming for cumulative growth rates of no less than 25%, 38%, and 46% for 2025-2027 [3][10]. - The increase in payroll payable in Q3, which rose by 281 million RMB to 353 million RMB, was primarily due to performance wage provisions for 2025, leading to a significant increase in expenses [3][9].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 108.78 CNY [5][11]. Core Insights - The company has maintained a prosperous business environment in the first three quarters of 2025, benefiting from the rapid development of data communication switches [2][11]. - The revenue for the first three quarters of 2025 reached 10.68 billion CNY, representing a year-on-year increase of 27.50%, while the net profit attributable to the parent company was 680 million CNY, up 65.26% year-on-year [11]. - The company has implemented a new equity incentive plan, aiming for cumulative growth rates of no less than 25%, 38%, and 46% for the years 2025 to 2027, which is expected to further stimulate the company's potential [11]. Financial Summary - Total revenue projections for 2025-2027 are 14.66 billion CNY, 17.86 billion CNY, and 21.27 billion CNY, respectively, with corresponding net profits of 1.08 billion CNY, 1.59 billion CNY, and 2.13 billion CNY [3][11]. - The earnings per share (EPS) are forecasted to be 1.36 CNY, 2.00 CNY, and 2.67 CNY for the years 2025, 2026, and 2027, respectively [3][11]. - The company’s net profit margin is projected to improve significantly, with a return on equity (ROE) expected to reach 34.8% by 2027 [3][11]. Market Data - The current stock price is 76.71 CNY, with a market capitalization of 61.02 billion CNY [6][11]. - The stock has a 52-week price range of 48.37 CNY to 103.61 CNY [6]. - The price-to-earnings (P/E) ratio is projected to decrease from 153.66 in 2023 to 28.98 by 2027, indicating a more favorable valuation over time [3][11].

Core Viewpoint - The company maintains a positive business outlook with strong growth in the data communication switch sector, benefiting from ongoing market demand and operational efficiency [1]. Financial Performance - The company expects revenues for 2025-2027 to be CNY 146.59 billion, CNY 178.57 billion, and CNY 212.74 billion, with net profits of CNY 10.82 billion, CNY 15.91 billion, and CNY 21.28 billion respectively, leading to EPS of CNY 1.36, CNY 2.00, and CNY 2.67 [2]. - For the first three quarters of 2025, the company reported revenues of CNY 106.80 billion, a year-on-year increase of 27.50%, and a net profit of CNY 6.80 billion, up 65.26% [2]. - In Q3 2025, revenues reached CNY 40.31 billion, reflecting a year-on-year growth of 20.93% but a quarter-on-quarter decline of 2.00%, with net profit at CNY 2.28 billion, down 11.49% year-on-year and 33.79% quarter-on-quarter [2]. Cost and Profitability - The company recorded an increase in employee compensation liabilities in Q3, totaling CNY 3.53 billion, primarily due to performance bonuses accrued since the beginning of 2025, leading to a significant rise in expenses [3]. - Excluding the impact of employee compensation, the adjusted net profit for Q3 is approximately CNY 5.1 billion, continuing a trend of substantial growth [4]. Strategic Initiatives - The company launched a new equity incentive plan in September, aiming for cumulative growth rates of no less than 25%, 38%, and 46% for the years 2025-2027, which is expected to further enhance its potential [4].