Core Viewpoint - The company faced performance pressure in Q3 2025, with total revenue increasing by 8.1% year-on-year to 20.93 billion yuan, while net profit attributable to shareholders decreased by 12.0% to 1.97 billion yuan, primarily due to declining sales of key customer pickup models, new factory constructions in Mexico and Thailand, and increased R&D investments [4][5]. Revenue and Profit Analysis - In Q3 2025, the company's revenue rose by 12.1% year-on-year and 11.5% quarter-on-quarter to 7.99 billion yuan, but net profit fell by 13.7% year-on-year and 7.9% quarter-on-quarter to 670 million yuan [4]. - The gross margin for the first three quarters of 2025 decreased by 2.0 percentage points to 19.2%, while the selling, general, and administrative expenses ratio increased by 0.9 percentage points to 8.9% [5]. Business Segment Performance - Automotive electronics continued to drive revenue growth, with a 52.4% year-on-year increase in revenue to 1.97 billion yuan. Interior functional components also saw steady growth, with a 14.0% increase to 6.87 billion yuan [5]. - The robotics segment is expected to contribute positively to profits, with the company having sent samples of linear and rotary actuators to clients. The gross margin for the electric drive system business was 30.6% in the first half of 2025 [5]. - The liquid cooling segment has achieved self-research on core components and is extending its technology to various fields, with initial orders of 1.5 billion yuan from data center providers like Huawei and Nvidia [5]. Global Strategy and Platform Development - The company is accelerating its global layout, planning to increase closed-loop air suspension production capacity to 1.5 million sets per year by 2025, with new factories in Mexico and Thailand [6]. - The dual-platform strategy for smart vehicles and robotics is being developed, with the company supplying high-value components to major clients such as Tesla and BYD [6][7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [3]. Core Insights - The company's total revenue for the first three quarters of 2025 increased by 8.1% year-on-year to 20.93 billion yuan, while net profit attributable to shareholders decreased by 12.0% to 1.97 billion yuan [1]. - The automotive electronics segment continues to drive revenue growth, with a 52.4% year-on-year increase in revenue to 1.97 billion yuan [2]. - The company is focusing on expanding its global footprint and developing platform advantages in smart vehicles and robotics [2]. Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 7.99 billion yuan, a year-on-year increase of 12.1%, but net profit decreased by 13.7% [1]. - For the first three quarters of 2025, the gross margin decreased by 2.0 percentage points to 19.2%, while the selling, general, and administrative expenses ratio increased by 0.9 percentage points to 8.9% [2]. Business Segments - Automotive Electronics: Revenue from automotive electronics (air suspension, intelligent driving, and smart cockpit components) grew by 52.4% to 1.97 billion yuan [2]. - Robotics: The company has begun sampling linear and rotary actuators and expects positive contributions from robotics-related businesses [2]. - Liquid Cooling: The company has developed core components for thermal management and is actively engaging with major data center providers, securing initial orders worth 1.5 billion yuan [2]. Strategic Initiatives - The company plans to increase its closed-loop air suspension production capacity to 1.5 million sets per year by 2025 and has opened a new factory in Hangzhou Bay [2]. - The global expansion includes the full production of the first phase of the Mexico project and plans for a factory in Thailand to be operational by early 2026 [2]. Profitability and Valuation - The report projects a decrease in net profit estimates for 2025, 2026, and 2027 by 14%, 20%, and 13% respectively, reflecting short-term pressures from downstream customers [3]. - The company’s revenue is expected to grow from 19.7 billion yuan in 2023 to 46.4 billion yuan by 2027, with a projected net profit of 2.83 billion yuan in 2025 [3][8].

Core Viewpoint - The company's performance in 1H25 is in line with expectations, with total revenue increasing by 5.8% year-on-year to 12.94 billion yuan, while net profit decreased by 11.1% to 1.30 billion yuan, primarily due to weak sales of key customer pickup models and increased costs from new factories and business expansion [3]. Group 1: Financial Performance - In 2Q25, the company's revenue rose by 9.7% year-on-year and 24.3% quarter-on-quarter to 7.17 billion yuan, while net profit decreased by 10.0% year-on-year and increased by 29.0% quarter-on-quarter to 730 million yuan [3]. - The gross margin for 1H25 decreased by 1.8 percentage points to 19.6%, and the selling, general, and administrative expenses ratio increased by 1.3 percentage points to 9.4% [4]. Group 2: Business Segments - The automotive electronics business (air suspension, intelligent driving, intelligent cockpit components) saw a significant revenue increase of 52% year-on-year to 1.1 billion yuan [4]. - Revenue from interior functional components and thermal management systems grew steadily, with year-on-year increases of 12% to 4.4 billion yuan and 7% to 1.0 billion yuan, respectively [4]. - The company's thermal management capabilities have improved significantly, with self-developed core components like electronic expansion valves, and expansion into liquid cooling for servers, energy storage, and robotics, securing initial orders worth 1.5 billion yuan [4]. Group 3: Strategic Initiatives - The company is accelerating its global expansion, planning to increase closed air suspension production capacity to 1.5 million sets per year by 2025, with new factories in Mexico, Thailand, and Poland [6]. - The dual-platform strategy for smart vehicles and robotics is being implemented, with potential single-vehicle supply amounts reaching up to 30,000 yuan, and a focus on developing a platform supply advantage in the robotics sector [6].

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company's performance in 2Q25 met expectations, with total revenue increasing by 5.8% year-on-year to 12.94 billion yuan, while net profit attributable to shareholders decreased by 11.1% to 1.30 billion yuan [1]. - The company has significantly enhanced its thermal management capabilities, opening new growth avenues in liquid cooling, with a focus on self-research of core components and expansion into data center applications [2]. - The company is accelerating its global expansion and platformization in smart vehicles and robotics, with plans to increase production capacity and diversify its customer base [3]. Summary by Sections Financial Performance - In 1H25, total revenue reached 12.94 billion yuan, accounting for approximately 39% of the annual forecast, while net profit was 1.30 billion yuan, also about 39% of the annual forecast [1]. - For 2Q25, revenue was 7.17 billion yuan, reflecting a year-on-year increase of 9.7% and a quarter-on-quarter increase of 24.3% [1]. Business Segments - Automotive electronics business saw a revenue increase of 52% to 1.1 billion yuan, while interior functional parts and thermal management systems also showed steady growth [2]. - The company has achieved self-research in key components like electronic expansion valves and is actively engaging with major data center providers, securing initial orders worth 1.5 billion yuan [2]. Growth Strategy - The company plans to enhance its closed-loop air suspension production capacity to 1.5 million sets per year by 2025 and is expanding its international footprint with new factories in Mexico and Thailand [3]. - The dual-platform strategy for smart vehicles and robotics is expected to leverage the company's self-research capabilities and supplier advantages to diversify its business [3]. Profitability and Valuation - The report forecasts net profits of 3.31 billion yuan for 2025, with a projected growth rate of 10.2% [4]. - The company's P/E ratio is expected to be 32 in 2025, with a projected P/B ratio of 4.9 [4].