S.C(SZ:300724)2025-11-03 02:36Summary of Shenzhen SC New Energy Technology Corp 3Q25 Earnings Call Company Overview - Company: Shenzhen SC New Energy Technology Corp - Industry: New Energy Technology - Market Cap: Rmb32,803 million - Stock Rating: Underweight - Price Target: Rmb79.00, representing a downside of 16% from the current price of Rmb94.34 as of October 27, 2025 Financial Performance - 3Q25 Revenue: Rmb4,734 million, a decrease of 17% YoY, but above Morgan Stanley's estimate of Rmb2-3 billion due to better-than-expected sales recognition [6][2] - Gross Profit: Rmb1,328 million, down 1% YoY, with a gross profit margin of 28.1%, an increase of 4.7 percentage points YoY [2][6] - Net Profit: Rmb858 million, an increase of 8% YoY, exceeding estimates due to effective control over operating expenses and impairment losses [6][2] - Operating Profit: Rmb943 million, up 14% YoY [2] - Earnings Per Share (EPS): Rmb2.47, an increase of 8% YoY [2] Cost Management - Cost of Goods Sold: Rmb3,406 million, a decrease of 22% YoY [2] - Selling Expenses: Rmb41 million, down 67% YoY [2] - R&D Expenses: Rmb119 million, down 10% YoY [2] - Asset Impairment Cost: Rmb82 million, down 64% YoY [2] Future Outlook - New Order Guidance for FY25: Approximately Rmb3 billion, a decrease of 60% YoY, with overseas order growth partially offsetting domestic shortfalls [6] - Management Expectations: Anticipates improvement in domestic demand and continued growth in overseas orders in 2026 [6] Risks and Considerations - Upside Risks: Higher-than-expected demand for TOPCon cells and technological breakthroughs that reduce costs [9] - Downside Risks: Lower-than-expected demand for TOPCon cells and slower-than-expected cost reductions for HJT cells [9] Valuation Methodology - Valuation Approach: Price target derived using a 2x 2026 estimated price-to-book (P/B) ratio, reflecting the stock's historical low P/B multiple of 1.8x [7] Key Metrics - Operating Profit Margin: 19.9%, up 5.4 percentage points YoY [2] - Profit Before Tax Margin: 21.0%, up 5.0 percentage points YoY [2] - Non-GAAP Net Profit Margin: 18.1%, up 4.2 percentage points YoY [2] This summary encapsulates the key financial metrics, management outlook, and risks associated with Shenzhen SC New Energy Technology Corp's recent performance and future expectations.