Performance - The company reported a revenue of 8.436 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 6.98% [1] - The net profit attributable to shareholders reached 982 million yuan, up 14.62% year-on-year, while the net profit excluding non-recurring items was 977 million yuan, reflecting a 15.13% increase [1] - The gross profit margin for the first three quarters was 25.09%, an increase of 0.82 percentage points year-on-year [1] - In Q3 2025, the company achieved a revenue of 2.740 billion yuan, a decrease of 3.63% year-on-year, with a net profit attributable to shareholders of 318 million yuan, down 1.83% year-on-year [1] - The gross profit margin for Q3 was 25.84%, an increase of 0.26 percentage points year-on-year [1] Technological Innovation - The company successfully developed the world's first 800kV/80kA large-capacity circuit breaker, marking a significant achievement in high-voltage large-capacity circuit breaker technology [1] - R&D expenditure for the first three quarters was 376 million yuan, a year-on-year increase of 26.2% [1] - The development of the 800kV/80kA circuit breaker was a collaborative effort with State Grid Shaanxi Electric Power, Xi'an Jiaotong University, and China Electric Power Research Institute, completing all type tests successfully [1] Future Outlook - The company's contract liabilities for the first three quarters amounted to 1.868 billion yuan, a year-on-year increase of 46.32%, indicating potential support for future performance growth [1] - Given the acceleration of UHV and main grid construction, the company is positioned as a leading enterprise in the UHV sector, with expected continuous growth in performance [2] - Projected net profits attributable to shareholders for 2025, 2026, and 2027 are estimated at 1.395 billion yuan, 1.620 billion yuan, and 1.846 billion yuan, respectively, with corresponding PE ratios of 19, 16, and 14 times [2]

Investment Rating - Investment Rating: Buy (Maintain) [1] Core Views - The company reported a revenue of 8.436 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 6.98%, and a net profit attributable to shareholders of 0.982 billion yuan, up 14.62% year-on-year [4] - The company achieved a gross margin of 25.09%, an increase of 0.82 percentage points year-on-year [4] - The company successfully developed the world's first 800kV/80kA large-capacity circuit breaker, marking a significant technological advancement in the high-voltage large-capacity circuit breaker field [5] - Contract liabilities increased by 46.32% year-on-year to 1.868 billion yuan, indicating strong future performance support [5] - The company is expected to benefit from accelerated construction in the ultra-high voltage and main grid sectors, with projected net profits of 1.395 billion, 1.620 billion, and 1.846 billion yuan for 2025, 2026, and 2027, respectively [6] Financial Summary - Revenue for 2025 is projected to be 14.081 billion yuan, with a year-on-year growth of 13.5% [8] - The net profit attributable to shareholders is expected to reach 1.395 billion yuan in 2025, reflecting a year-on-year increase of 36.3% [8] - The gross margin is anticipated to improve to 23.4% in 2025 [8] - The company’s P/E ratios for 2025, 2026, and 2027 are projected to be 18.92, 16.29, and 14.29, respectively [8]