Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported better-than-expected performance in Q3 2025, with revenue of 1.2 billion yuan, a year-on-year increase of 6.2%, and a net profit of 200 million yuan, up 12.0% year-on-year. Q3 revenue reached 470 million yuan, with quarter-on-quarter and year-on-year growth of 16.8% and 19.6%, respectively. The net profit for Q3 was 100 million yuan, showing a significant increase of 63.1% quarter-on-quarter and 34.9% year-on-year. The main reasons for this performance include improved product delivery structure leading to higher gross margins and further loss reduction in the Huawang business [4][6] Summary by Sections Company Overview - Latest closing price: 7.64 yuan - Total shares: 620 million, circulating shares: 516 million - Total market value: 4.7 billion yuan, circulating market value: 3.9 billion yuan - 52-week high/low: 8.14/6.77 yuan - Debt-to-asset ratio: 31.5% - Price-to-earnings ratio: 18.80 [3] Financial Performance - For Q1-Q3 2025, the company achieved a gross margin of 39.4% and a net margin of 16.9%, with year-on-year increases of 3.3 percentage points and 0.9 percentage points, respectively. The sales expense ratio increased to 6.9%, while management expenses decreased to 6.4%, and R&D expenses rose significantly to 7.9% due to new product testing costs [5] Market Outlook - The investment in the power grid continues to show positive trends, with completed investments reaching 437.8 billion yuan in the first nine months of 2025, a year-on-year increase of 9.9%. The report anticipates that the unified national electricity market will advance beyond expectations during the 14th Five-Year Plan, and the penetration rate of wind and solar power is expected to accelerate [5] Earnings Forecast - The earnings forecast for 2025-2027 has been adjusted upwards, with projected revenues of 2.09 billion, 2.50 billion, and 3.00 billion yuan, and net profits of 380 million, 470 million, and 590 million yuan, respectively. The corresponding price-to-earnings ratios are expected to be 14, 11, and 9 times [6][10]