Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 12-month target price of 37.86 CNY [4][7]. Core Views - The company demonstrated stable profitability with a revenue of 2.118 billion CNY for the first three quarters of 2025, reflecting a year-on-year increase of 6.68%. The net profit attributable to shareholders was 373 million CNY, up 1.15% year-on-year [1]. - The company is expected to benefit from its leading position in defense radar and the long-term growth potential in military trade and low-altitude sectors [4][2]. - High R&D investment continues to enhance market competitiveness, with R&D expenses reaching 119 million CNY in the first three quarters, representing 5.6% of revenue [3]. Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 400 million CNY, a year-on-year decrease of 7.0%. The gross margin for Q3 was 34.9%, down 0.8 percentage points year-on-year, while the net margin improved by 0.6 percentage points to 5.8% [1]. - For the first three quarters, the gross margin was 40.1%, a decrease of 0.1 percentage points year-on-year, and the net margin was 17.6%, down 1.0 percentage points [1]. Market Opportunities - The company has secured contracts for domestic projects, including a meteorological radar project in Shandong and an airport anti-drone radar project, while also performing well in overseas military trade projects [2]. - The company is positioned to benefit from the long-term development of both domestic and international markets as a leading radar enterprise [2]. R&D and Inventory Management - The company has maintained a high level of R&D investment, with a focus on preparing inventory to meet anticipated demand, as indicated by a 16.5% increase in inventory compared to the end of the first half of 2025 [3]. Profit Forecast - The projected net profits for 2025, 2026, and 2027 are 742 million CNY, 871 million CNY, and 1.024 billion CNY, respectively, with growth rates of 17.8%, 17.3%, and 17.7% [4][9].