Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 8.44 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 7.0%. The net profit attributable to shareholders reached 980 million yuan, up 14.6% year-on-year, while the net profit excluding non-recurring items was also 980 million yuan, reflecting a 15.1% increase year-on-year [2][4] - In Q3 2025, the company's revenue was 2.74 billion yuan, showing a decline of 3.6% year-on-year and a decrease of 14.0% quarter-on-quarter. The net profit attributable to shareholders was 320 million yuan, down 1.8% year-on-year but up 3.6% quarter-on-quarter [2][4] Summary by Sections Revenue Performance - The revenue for Q3 2025 decreased primarily due to the absence of high-voltage delivery projects that were present in the same period last year. Additionally, delays in orders for distribution network equipment due to the State Grid's joint procurement have further suppressed revenue growth [11] Profitability - The gross margin for the first three quarters of 2025 was 25.09%, an increase of 0.96 percentage points year-on-year. In Q3 2025, the gross margin was 25.84%, up 0.37 percentage points year-on-year and 4.28 percentage points quarter-on-quarter. This improvement is attributed to ongoing internal cost reduction and efficiency enhancement efforts [11] Expense Management - The total expense ratio for the first three quarters of 2025 was 10.39%, a slight decrease of 0.02 percentage points year-on-year. The breakdown includes a sales expense ratio of 3.42%, a management expense ratio of 2.99%, a research and development expense ratio of 4.46%, and a financial expense ratio of -0.47% [11] Inventory and Cash Flow - As of the end of Q3 2025, the company's inventory was 2.508 billion yuan, an increase of 9.0% year-on-year and 12.0% quarter-on-quarter. The contract liabilities reached 1.868 billion yuan, up 46.3% year-on-year [11] - The net cash flow from operating activities for the first three quarters of 2025 was 130 million yuan, a significant decrease of 85.5% year-on-year. However, in Q3 2025, the operating cash flow was 560 million yuan, reflecting a year-on-year increase of 116.3% and a quarter-on-quarter increase of 374.4% [11] Future Outlook - The company is expected to benefit from the upcoming high-voltage bidding cycle, with anticipated project progress leading to equipment deliveries. The estimated net profit attributable to shareholders for 2025 is projected to reach approximately 1.2 billion yuan, corresponding to a PE ratio of about 19.5 times [11]