Core Insights - The company reported a continuous narrowing of net profit losses, indicating effective cost control measures [1][2] - The domestic market is under pressure due to conservative capital expenditures from operators, but opportunities for growth exist in the construction of 10G optical networks and overseas markets [2][3] - Future performance is expected to improve significantly due to overseas market expansion and domestic product upgrades [3] Financial Performance - In the first three quarters, the company achieved revenue of 984 million, a year-on-year decline of 32.16%, with a net profit loss of 65 million, compared to a net profit of 38 million in the same period last year [1] - In Q3 2025, revenue was 314 million, down 20.76% year-on-year and 7.15% quarter-on-quarter, with a net profit loss of 14 million, compared to a net profit of 5 million in the same quarter last year [1] - The gross profit margin for the first three quarters was 10.34%, a decrease of 5.86 percentage points, while Q3 2025 gross profit margin was 10.55%, down 4.79 percentage points year-on-year and 1.51 percentage points quarter-on-quarter [1] Market Outlook - The company is actively participating in operators' innovative self-research projects and focusing on customized demand development, which may lead to significant profit opportunities with the ongoing construction of 10G optical networks [2] - The company has made substantial progress in overseas markets, particularly in Africa and Latin America, with significant growth in revenue, proportion, and gross profit margin [2] - The combination of domestic product matrix upgrades and expansion into high-margin overseas markets is expected to drive a recovery in the company's performance [2] Investment Recommendations - The impact of slowed capital expenditures from domestic operators is expected to persist into Q4, but the outlook for 2026-2027 is positive due to overseas market contributions and domestic product upgrades [3] - The company forecasts net profits of -91 million, 7 million, and 81 million for 2025, 2026, and 2027 respectively, with significant year-on-year growth anticipated in the following years [3] - The company maintains a "recommended" rating, with projected PE ratios of 543.11 and 47.66 for 2026 and 2027 respectively [3]