Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 1.363 billion yuan for the first three quarters of 2025, a year-on-year decrease of 20.26%, and a net profit attributable to shareholders of 62 million yuan, down 51.26% year-on-year. In Q3 2025 alone, revenue was 444 million yuan, a decline of 21.81%, with a net profit of 10 million yuan, down 71.99% year-on-year. The demand for smart toilets has been suppressed due to the cyclical nature of the real estate market and changes in market conditions, leading to increased competition and pressure on sales revenue and profit margins [4][5] - The company's gross margin for the first three quarters of 2025 was 26.07%, a decrease of 2.41 percentage points year-on-year. The net profit margin was 4.52%, down 2.87 percentage points year-on-year. In Q3 2025, the gross margin was 26.31%, a decline of 1.04 percentage points year-on-year, indicating that the decline in gross margin is primarily due to intensified industry competition and a slight decrease in product prices [4][5] - The company is positioning itself as a global leader in bathroom space and home water system solutions, focusing on the development of a complete ecosystem for bathroom spaces, including smart toilets, smart showers, and new-generation bathroom cabinets. The company aims to lead in future-oriented solutions such as prefabricated bathrooms and elderly-friendly bathroom solutions, collaborating with Beijing University of Civil Engineering and Architecture to develop elderly-friendly products [5][6] Financial Summary - The company expects revenues for 2025, 2026, and 2027 to be 1.931 billion yuan, 2.163 billion yuan, and 2.375 billion yuan, respectively, with year-on-year changes of -18.1%, +12.0%, and +9.8%. The net profit attributable to shareholders is projected to be 95 million yuan, 127 million yuan, and 154 million yuan for the same years, with year-on-year changes of -47.3%, +32.7%, and +21.4% [6][8] - The earnings per share (EPS) are expected to be 0.23 yuan, 0.30 yuan, and 0.37 yuan for 2025, 2026, and 2027, with corresponding price-to-earnings (P/E) ratios of 39.61, 29.86, and 24.59 [6][8]