Core Viewpoint - The report from Dongfang Securities indicates that Yuanguang Software's net profit attributable to the parent company for the first nine months is 123 million, reflecting a year-on-year increase of 11.9%. However, the net profit for Q3 2025 decreased by 10.9% to 48.06 million, while operating cash flow significantly improved to 44.39 million from a cash outflow of 123 million in the same period last year. [1] Financial Performance - For the first nine months, the net profit attributable to the parent company reached 123 million, marking an increase of 11.9% year-on-year [1] - In Q3 2025, the net profit attributable to the parent company decreased by 10.9% to 48.06 million [1] - Operating cash flow improved to 44.39 million, a significant turnaround from a cash outflow of 123 million in the previous year [1] Cost Management - There is a noticeable downward trend in the expense ratio, which is expected to enhance future profit growth [1] Business Growth Drivers - The gradual maturity of the new generation enterprise digital core system DAP and the accelerated domestic replacement of ERP in central and state-owned enterprises are likely to boost the company's digital enterprise business [1] - The implementation of large models in enterprise application scenarios is expected to accelerate the artificial intelligence business significantly [1] - With the deepening construction of new power systems, the intelligence of distribution networks and the prevalence of electricity spot trading are anticipated to grow, potentially leading to breakthroughs in related businesses in collaboration with the controlling shareholder, State Grid Digital Technology [1] Valuation - Based on comparable companies' PE levels for 2025, the reasonable valuation level for the company is estimated at a 47 times price-to-earnings ratio, corresponding to a target price of 8.46 yuan, maintaining a "buy" rating [1]