Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a significant increase in performance for Q3 2025, with revenue reaching 2.619 billion yuan, a year-on-year increase of 24.53%, and a net profit attributable to shareholders of 658 million yuan, up 30.60% year-on-year [2][6] - The growth is attributed to the recovery in domestic excavator demand, the restoration of foreign client demand, and the addition of new clients, leading to a notable increase in the excavator segment's revenue [12] - The company's overall profitability continues to improve, with a gross margin of 42.2% in Q3 2025, an increase of 0.9 percentage points year-on-year [12] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved revenue of 7.790 billion yuan, a year-on-year increase of 12.31%, and a net profit of 2.087 billion yuan, up 16.49% year-on-year [6] - In Q3 2025, the company reported a revenue of 2.619 billion yuan and a net profit of 658 million yuan, reflecting strong growth in both metrics [6] Business Segments - The excavator segment is expected to see significant growth due to the recovery in domestic and foreign demand, with the domestic excavator industry sales increasing by 21.2% year-on-year in Q3 2025 [12] - The non-excavator segment is also projected to improve, with revenue from non-excavator hydraulic cylinders expected to grow due to diversification into various industrial sectors [12] Future Outlook - The hydraulic components business is anticipated to continue its upward trajectory, supported by the steady progress of the linear drive business, which is expected to open new growth opportunities [12] - The company is expected to achieve net profits of 3.004 billion yuan and 3.612 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 42 times and 35 times [12]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's net profit attributable to shareholders increased by 31% year-on-year in Q3 2025, indicating a significant acceleration in performance growth [2] - The company's revenue for Q3 2025 reached 2.62 billion yuan, up 24.5% year-on-year, with net profit attributable to shareholders at 660 million yuan, reflecting a 30.6% increase [2] - The excavator segment is expected to see substantial revenue growth, with small, medium, and large excavator cylinder revenues increasing by 60%, 5%, and 25% respectively, driven by market share gains [2] - The company's profitability has improved significantly, with a net profit margin of 25.2% in Q3, up 1.2 percentage points year-on-year [3] - The establishment of a hydraulic component production base in Mexico is expected to enhance the company's access to high-end customers in North America [4] Financial Summary - The company's total revenue is projected to grow from 8.985 billion yuan in 2023 to 15.011 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 19.78% [1] - Net profit attributable to shareholders is forecasted to increase from 2.499 billion yuan in 2023 to 4.141 billion yuan in 2027, reflecting a CAGR of 21.30% [1] - The latest diluted earnings per share (EPS) is expected to rise from 1.86 yuan in 2023 to 3.09 yuan in 2027 [1]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company achieved a revenue of 5.171 billion yuan in H1 2025, representing a year-on-year increase of 7.00%. The net profit attributable to shareholders was 1.429 billion yuan, up 10.97% year-on-year, and the net profit after deducting non-recurring gains and losses was 1.450 billion yuan, an increase of 16.90% year-on-year [2][6]. - The excavator segment is expected to see significant growth, with sales of excavator cylinders increasing by over 15% year-on-year. The company is also making breakthroughs in medium and large excavator pumps and valves, leading to an increase in market share [2][11]. - The company plans to implement a mid-term dividend of 402 million yuan, with a dividend payout ratio of approximately 28% [2][11]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 5.171 billion yuan, with a net profit of 1.429 billion yuan and a net profit after deducting non-recurring items of 1.450 billion yuan. In Q2 2025, revenue was 2.749 billion yuan, with a net profit of 812 million yuan [6][11]. - The overall gross margin for H1 2025 was 41.85%, an increase of 0.33 percentage points year-on-year, while the net profit margin was 27.7%, up 1.0 percentage points year-on-year [11]. Business Segments - The excavator segment is a key driver of revenue growth, benefiting from a 17% year-on-year increase in the excavator industry sales in China, with domestic sales up 23% and exports up 10% [11]. - The non-excavator segment is also improving, with sales of non-excavator pump and valve products increasing by over 30% year-on-year. The company is expanding its product range and gaining market share in various sectors [11]. Future Outlook - The company anticipates continued growth in the excavator business in the second half of 2025, driven by increased demand in the industry. The non-excavator segment is expected to benefit from demand in industrial sectors and accelerated domestic substitution [11]. - The linear actuator project is progressing well, with over 50 new products developed and nearly 300 new customers added in H1 2025, indicating potential new growth points [11].