Investment Rating - The report maintains a "Buy" rating for the company with a target price of 28.75 RMB, up from a previous value of 26 RMB [7][5]. Core Insights - The company, as a leader in secondary equipment, is expected to benefit significantly from the construction of new power systems, with steady growth in both domestic and international business [1][3]. - The company's revenue for the first three quarters of 2025 reached 385.77 billion RMB, representing an 18.45% year-over-year increase, while net profit was 48.55 billion RMB, up 8.43% year-over-year [2]. - The gross margin for the first three quarters of 2025 was 26.47%, a decrease of 2.79 percentage points year-over-year, primarily due to a shift in business structure with a higher proportion of lower-margin external business [2]. Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 143.33 billion RMB, a year-over-year increase of 16.65%, but a quarter-over-quarter decrease of 6.61%. The net profit for the same period was 19.03 billion RMB, reflecting a year-over-year increase of 7.81% and a quarter-over-quarter decrease of 16.24% [1]. - For the first three quarters of 2025, the overall expense ratio was 11.96%, down 1.20 percentage points year-over-year, with specific expense ratios for sales, management, finance, and R&D being 3.91%, 2.49%, -0.41%, and 5.98%, respectively [2]. Business Development - The company is experiencing steady growth in grid investment, with a reported 437.8 billion RMB in basic construction investment in China's power grid for the first nine months of 2025, a 9.9% year-over-year increase [3]. - The company has successfully expanded its international business, with overseas revenue reaching 19.87 billion RMB in the first half of 2025, a 139.18% year-over-year increase, and international contracts growing by over 200% [4]. Future Outlook - The company forecasts net profits for 2025-2027 to be 83.31 billion RMB, 91.98 billion RMB, and 101.61 billion RMB, respectively, with corresponding EPS of 1.04 RMB, 1.15 RMB, and 1.27 RMB [5][11]. - The report highlights the company's strong technological advantages and its prominent position as a leader in secondary equipment, justifying a valuation of 25 times PE for 2026 [5].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [6]. Core Insights - The company achieved a revenue of 24.243 billion yuan in H1 2025, representing a year-on-year increase of 19.54%, with a net profit attributable to shareholders of 2.952 billion yuan, up 8.82% year-on-year [1]. - The company signed new contracts worth 35.432 billion yuan in H1 2025, reflecting a growth of 23.46% compared to the previous year, with over 50% of contracts coming from outside the State Grid [2]. - International business saw a remarkable growth of over 200% in new contracts, with significant projects in markets such as Saudi Arabia and South America, contributing to an overseas revenue of 1.987 billion yuan, a 139.18% increase year-on-year [2]. - Emerging business segments grew nearly 40% year-on-year, with advancements in energy storage solutions and new product applications in various sectors [3]. - Revenue projections for 2025-2027 are estimated at 64.518 billion, 72.045 billion, and 80.608 billion yuan, with corresponding growth rates of 12.4%, 11.7%, and 11.9% [3]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 24.243 billion yuan, with a net profit of 2.952 billion yuan, and a cash dividend of 0.147 yuan per share [1]. - For Q2 2025, revenue reached 15.348 billion yuan, marking a 22.50% increase year-on-year, while net profit was 2.272 billion yuan, up 7.33% [1]. Market Expansion - The company has strengthened its market share in domestic sectors and achieved significant project wins in both domestic and international markets, with a notable focus on energy storage and smart grid solutions [2][3]. - The international market has become a crucial growth driver, with overseas revenue now accounting for 8.20% of total revenue [2]. Future Projections - The company is expected to see steady revenue growth, with net profits projected to reach 8.204 billion yuan in 2025, growing to 10.611 billion yuan by 2027 [5]. - The report anticipates a PE ratio of 22X for 2025, decreasing to 17X by 2027, indicating a favorable valuation trend [3].