Core Viewpoint - The company reported strong financial performance for Q1-Q3 2025, with revenue and net profit showing significant year-on-year growth, indicating robust operational efficiency and market demand [3][4]. Financial Performance - For Q1-Q3 2025, the company achieved revenue of 1.413 billion yuan, a year-on-year increase of 27.32%. The net profit attributable to shareholders was 221 million yuan, up 83.27% year-on-year, while the net profit excluding non-recurring items was 206 million yuan, reflecting a 77.68% increase [3]. - In Q3 2025, revenue reached 476 million yuan, with year-on-year and quarter-on-quarter growth of 21.90% and 2.30%, respectively. The net profit for the same period was 75 million yuan, showing a year-on-year increase of 59.16% but a quarter-on-quarter decrease of 7.18% [3]. Profitability - The net profit margin for Q1-Q3 2025 was 15.67%, an increase of 4.78 percentage points year-on-year. The gross margin stood at 27.40%, up 2.66 percentage points year-on-year. In Q3 2025, the net profit margin was 15.80%, with year-on-year growth of 3.70% but a quarter-on-quarter decline of 1.61% [4]. Cost Management - The expense ratio for Q1-Q3 2025 was 11.74%, a decrease of 3.20 percentage points year-on-year. The breakdown of expenses showed sales, management, financial, and R&D expense ratios at 1.09%, 4.31%, 0.77%, and 5.57%, respectively, with all categories showing year-on-year reductions [5][6]. Strategic Developments - In September 2025, the company led a consortium to revise the national standard for precision cycloidal gear reducers, indicating its strong position in the industry. The company currently has an annual production capacity of 30,000 sets of reverse planetary roller screws [7]. - In August 2025, the company received a capital increase of 33 million yuan from Fuda, acquiring a 17% stake in the company. Fuda also plans to invest 54 million yuan to acquire an additional 18% stake, further enhancing business collaboration [8]. Earnings Forecast and Investment Rating - The company maintains a profit forecast of 301 million yuan, 385 million yuan, and 460 million yuan for 2025-2027, corresponding to EPS of 0.47, 0.60, and 0.71 yuan per share. The current market capitalization corresponds to a PE ratio of 34, 27, and 23 times for 2025-2027 [9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in Q3 2025, with revenue reaching 4.76 billion yuan, a year-on-year increase of 21.90% [7] - The net profit attributable to the parent company for Q1-Q3 2025 was 2.21 billion yuan, reflecting an 83.27% year-on-year growth [7] - The company is establishing a joint venture with Changban Technology to enhance business collaboration [7] Financial Performance Summary - For 2023A, total revenue is projected at 1,352 million yuan, with a year-on-year growth of 19.18% [1] - The net profit attributable to the parent company for 2023A is estimated at 103.53 million yuan, showing a significant increase of 57.85% year-on-year [1] - The earnings per share (EPS) for 2023A is expected to be 0.16 yuan [1] Future Projections - Revenue is expected to grow to 2,434 million yuan in 2025E, representing a 47.75% increase year-on-year [1] - The net profit attributable to the parent company is forecasted to reach 301.29 million yuan in 2025E, with a year-on-year growth of 62.61% [1] - EPS is projected to be 0.47 yuan in 2025E [1] Valuation Metrics - The current price-to-earnings (P/E) ratio is 34.34 for 2025E [1] - The company’s market capitalization is approximately 10,345.80 million yuan [5] - The price-to-book (P/B) ratio is 4.05 [5]