Core Insights - The company, Far East Holdings, reported a total of 1.769 billion RMB in contracts signed or won by its subsidiaries in September 2025, representing a quarter-on-quarter increase of 4.75% [1] - From January to September 2025, the company achieved a total of 21.624 billion RMB in contracts signed or won, marking a year-on-year growth of 8.37%, setting a historical high [1] Smart Cable Network Business - For the period from January to September 2025, the smart cable network business secured contracts worth 17.764 billion RMB, reflecting a year-on-year increase of 13.95% [1] - In September 2025, the smart cable network business won contracts totaling 1.471 billion RMB, which is a year-on-year growth of 16.35% [1] Smart Battery Business - The smart battery business recorded a total of 1.872 billion RMB in contracts signed or won from January to September 2025 [1] - In September 2025, the smart battery business achieved a staggering 2.72 billion RMB in contracts, showing a remarkable quarter-on-quarter increase of 1742.80% [1] Smart Airport Business - The smart airport business secured contracts worth 1.988 billion RMB from January to September 2025 [1] - In September 2025, the smart airport business won contracts totaling 0.027 billion RMB [1]

Core Viewpoint - Far East Holdings (600869) reported significant growth in contract orders, indicating strong business performance and market demand in various sectors [1] Group 1: Overall Contract Orders - In July 2025, the company received contracts exceeding 10 million yuan totaling 2.814 billion yuan, representing a year-on-year increase of 42.61% and a quarter-on-quarter increase of 8.51% [1] - From January to July, the total contracts received exceeded 10 million yuan amounted to 18.167 billion yuan, showing a year-on-year growth of 18.77%, marking a historical high [1] Group 2: Smart Cable Network Business - From January to July, the smart cable network business secured contracts exceeding 10 million yuan totaling 14.695 billion yuan, reflecting a year-on-year increase of 20.30% [1] - In July, contracts exceeding 10 million yuan amounted to 2.129 billion yuan, with a year-on-year growth of 18.06% [1] Group 3: Smart Battery Business - The smart battery business achieved contracts exceeding 10 million yuan totaling 1.586 billion yuan from January to July, which is a year-on-year increase of 26.50% [1] - In July, contracts exceeding 10 million yuan reached 614 million yuan, showing a remarkable year-on-year growth of 358.97% and a quarter-on-quarter increase of 596.54% [1] Group 4: Smart Airport Business - The smart airport business secured contracts exceeding 10 million yuan totaling 1.886 billion yuan from January to July, indicating a year-on-year increase of 3.23% [1] - In July, contracts exceeding 10 million yuan amounted to 71 million yuan, with a year-on-year growth of 97.26% [1]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [9][15]. Core Views - The traditional cable business is expected to see marginal improvement, while the battery business is anticipated to recover from losses. The company is actively expanding its AI business [3]. - In 2024, the company reported revenue of 26.09 billion yuan, a year-on-year increase of 6.7%, but a net loss of 320 million yuan, a significant decline of 199.5% year-on-year. The fourth quarter of 2024 showed revenue of 7.87 billion yuan, with a quarter-on-quarter increase of 11.3% and a year-on-year increase of 14.5% [3][4]. - The company is benefiting from the increasing demand for reliable power systems, particularly in the nuclear power sector, as confirmed by the approval of five nuclear power projects in April 2025 [5]. Summary by Sections Company Overview - Latest closing price: 4.55 yuan - Total market capitalization: 10.1 billion yuan - Total shares outstanding: 2.219 billion shares - Debt-to-asset ratio: 78.6% [2]. Financial Performance - In Q1 2025, the company reported revenue of 4.87 billion yuan, a year-on-year increase of 1.3%, and a net profit of 50 million yuan, a year-on-year increase of 84.6% [3]. - The gross margin and net margin for Q1 2025 were 10.7% and 0.9%, respectively, with slight changes compared to the previous year [4]. Business Segments - The smart cable network business generated revenue of 22.703 billion yuan in 2024, a year-on-year increase of 6.0%, but the net profit decreased by 70.1% due to rising copper prices and intense competition [5]. - The smart battery segment saw revenue of 1.65 billion yuan in 2024, a year-on-year increase of 180.5%, but incurred a net loss of 690 million yuan [6]. - The smart airport business achieved revenue of 1.66 billion yuan in 2024, a year-on-year increase of 35.7%, with a net profit of 120 million yuan [8]. Earnings Forecast - The company forecasts revenues of 29.74 billion yuan, 33.90 billion yuan, and 38.36 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 590 million yuan, 820 million yuan, and 1.17 billion yuan [9][11].