Investment Rating - The report maintains a "Buy" rating for the company, Lianrui New Materials (688300) [1][4] Core Views - The company's revenue and profit continue to grow, with Q3 2025 results meeting expectations. Revenue reached 824 million yuan, a year-on-year increase of 18.76%, while net profit attributable to shareholders was 220 million yuan, up 19.01% year-on-year [4][5] - The company is focusing on high-performance advanced powder materials, with a steady increase in market share and a rising proportion of high-end product revenue [4][5] - The approval of convertible bonds for raising up to 695 million yuan will support new project construction, expected to contribute additional revenue [4][5] Financial Performance - For Q3 2025, the company reported a gross margin of 41.41%, which has been steadily increasing over the past three years, indicating robust profitability [4] - R&D expenses for the first three quarters reached 47.84 million yuan, representing a 10.32% increase year-on-year, accounting for 5.81% of revenue, highlighting a technology-driven strategy [4] - The company forecasts net profits of 313 million yuan, 395 million yuan, and 438 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 46x, 36x, and 33x [5][6] Project Investments - The high-performance ultra-pure spherical powder material project has a total investment of 423 million yuan, with an expected annual revenue of 659 million yuan and an average profit of 180 million yuan upon reaching full capacity [4][5] - The high thermal conductivity spherical alumina project, with a total investment of 388 million yuan, is expected to generate annual revenue of 310 million yuan and an average profit of 64 million yuan once operational [5]