Huadong CNC (002248): Gross Margin 20.71%→28.57%, Net Profit +152% High Growth but Revenue Under Pressure
Huadong CNC (002248): Gross Margin 20.71%→28.57%, Net Profit +152% High Growth but Revenue Under Pressure
Report Date: February 28, 2026
Stock Code: 002248.SZ
Company: Weihai Huadong CNC Co., Ltd.
Industry: Industrial Mother Machine / CNC Machine Tools
Author: Xin Viewpoint
Data Source: East Money Data Center (Real Financial Reports)
Core Investment Logic: Gross Margin Improvement Drives Profit High Growth, Focus on Revenue Turnaround
Huadong CNC's core investment logic is clear: gross margin continues to improve, driving net profit high-speed growth, but revenue is under short-term pressure and needs attention to turnaround point. In the first three quarters of 2025, revenue was 248.83 million yuan, down 3.21% year-over-year; net profit attributable to shareholders was 23.12 million yuan, up 151.78%. Net profit high growth mainly benefits from gross margin increasing from 20.71% in 2024 to 28.57% in 2025 Q3, up 7.86 percentage points.
The market worries about the company's revenue decline, but the core judgment is: gross margin improvement reflects product structure optimization and cost control ability enhancement, net profit high growth has sustainability. Full-year 2024 net profit was 8.50 million yuan, up 152.35% year-over-year; 2025 Q3 net profit was 23.12 million yuan, already exceeding the full-year 2024. Key observation points: whether revenue can return to growth, whether gross margin can be maintained above 28%.
Disclaimer: The author "Xin Viewpoint" has accounts on all mainstream video platforms. Welcome to follow for more excellent content. Any reproduction or commercial use without authorization is prohibited.
Profitability Significantly Improved, Gross Margin 20.71%→28.57% Up 7.86pp
The company's profitability has significantly improved, with core indicators continuing to improve. Gross margin in the first three quarters of 2025 was 28.57%, up 7.86 percentage points from 20.71% in full-year 2024, and up 9.78 percentage points from 18.79% in 2024 Q3. Gross margin has increased for multiple consecutive quarters, reflecting product structure optimization and cost control ability enhancement.
In terms of net margin, net margin in 2025 Q3 was about 9.29%, up 6.75 percentage points from 2.54% in full-year 2024. ROE (weighted) increased from 12.86% in 2024 to 28.00% in 2025 Q3, up 15.14 percentage points, and shareholder return rate improved significantly.
Net profit high growth: net profit attributable to shareholders in 2025 Q3 was 23.12 million yuan, up 151.78% year-over-year; deduct non-recurring net profit was 21.02 million yuan, profit quality is good, and non-recurring gains and losses have small impact. Full-year 2024 net profit was 8.50 million yuan, up 152.35% year-over-year, reversing the trend of net profit decline before 2024 Q3.
Revenue Under Short-Term Pressure, 2025Q3 -3.21% YoY Needs Attention to Turnaround
The company's revenue is under short-term pressure, and turnaround point needs attention. Operating revenue in the first three quarters of 2025 was 248.83 million yuan, down 3.21% year-over-year. By quarter, Q1 2025 revenue was 80.13 million yuan (-0.48%), Q2 revenue was 163.30 million yuan (-6.06%), Q3 revenue was 248.83 million yuan (-3.21%), and revenue growth rate continued to be negative.
Compared with 2024, full-year 2024 revenue was 334.26 million yuan, up 19.66% year-over-year; Q3 2024 revenue was 257.09 million yuan, up 13.52% year-over-year. Revenue growth rate turned negative in 2025, mainly affected by macroeconomic environment and downstream demand.
Key judgment: revenue decline is a short-term phenomenon, and the following signals need attention: (1) downstream manufacturing investment recovery; (2) company's new orders situation; (3) high-end CNC machine tool market expansion progress. If revenue growth turns positive in 2026, it will form a "revenue + profit" dual growth pattern.
Financial Data Comparison: Net Profit High Growth, Gross Margin Continues to Improve
| Indicator | 2023 | 2024 | 2025 Q1-Q3 | Trend |
|---|---|---|---|---|
| Revenue (100M Yuan) | 2.79 | 3.3426 | 2.4883 | -3.21% |
| Net Profit (100M Yuan) | 0.0337 | 0.0850 | 0.2312 | +151.78% |
| Gross Margin | ~18% | 20.71% | 28.57% | +7.86pp |
| Net Margin | ~1.2% | 2.54% | 9.29% | +6.75pp |
| ROE (Weighted) | ~5% | 12.86% | 28.00% | +15.14pp |
Note: 2023 data is estimated value, based on 2024 growth rate reverse calculation.
From the table data, it can be seen that the company's net profit is growing rapidly, gross margin and net margin continue to improve, and ROE has improved significantly. However, revenue is under short-term pressure, with Q3 2025 down 3.21% year-over-year, and turnaround point needs attention.
In terms of operating capacity, net operating cash flow in Q3 2025 was about 24.85 million yuan, and profit quality is good. Asset-liability ratio is about 80.70%, which is at a high level, and solvency risk needs attention.
CNC Machine Tool Industry Space is Wide, High-End is Core Trend
The CNC machine tool industry where the company is located has wide space, and high-end is the core trend. China's machine tool market size in 2025 is about 180 billion yuan, of which CNC machine tools account for about 75%, about 135 billion yuan. High-end CNC machine tools have large import substitution space, with localization rate of about 35%, expected to increase to 50% by 2027.
Policy support is strong. The "14th Five-Year Plan" clearly proposes to develop high-end CNC machine tools, and multiple provinces and cities have issued support policies. Downstream application fields are wide, including automobiles, aerospace, molds, 3C electronics, etc., and market demand is stable.
The company has regional advantages in Shandong Province's machine tool industry and stable customer resources. Main products include CNC machine tools, castings, etc., and has competitive advantages in specific niche fields. However, the company's scale is small, with 2024 revenue of about 334 million yuan, which is far from industry leaders.
Main Risks: Revenue Decline, Industry Competition, High Asset-Liability Ratio
Revenue decline is the core risk point. Revenue in Q3 2025 was down 3.21% year-over-year. If revenue continues to decline, it may affect the company's profitability and market position. Downstream manufacturing investment situation and company's new orders situation need to be closely monitored.
Intensified industry competition is the second largest risk point. The machine tool industry is fiercely competitive, and price wars may affect gross margin. Gross margin in Q3 2025 was 28.57%. If industry competition intensifies, gross margin may be under pressure.
High asset-liability ratio is the third largest risk point. Asset-liability ratio in Q3 2025 was about 80.70%, which is at a high level. High debt ratio may affect the company's financing ability and risk resistance ability.
Raw material price volatility is the fourth largest risk point. Steel and other raw material price volatility affects the company's costs. If raw material prices rise significantly, it may affect gross margin.
Valuation Analysis: Need to Combine Real-Time Stock Price, Focus on Revenue Turnaround
Due to real-time market data acquisition failure, current PE/PB valuation cannot be calculated. Investors can query the latest stock price through East Money, Tonghuashun and other platforms.
Based on Q3 2025 net profit of 23.12 million yuan, full-year 2025 net profit is expected to be about 30 million yuan. If 2026 net profit maintains 30% growth, 2026 net profit is expected to be about 39 million yuan.
Key judgment: Current valuation needs to be calculated based on real-time stock price. If revenue growth turns positive, valuation has upside space; if revenue continues to decline, valuation may be under pressure.
Investment Advice: Cautious Recommendation, Focus on Revenue Turnaround and Gross Margin Sustainability
Long-term investors: Can allocate small positions to share the company's profitability improvement dividends, recommended allocation ratio is 2% to 5%. Core observation points: whether revenue can return to growth, whether gross margin can be maintained above 28%.
Medium-term investors: It is recommended to increase allocation after revenue growth turns positive. If Q1 2026 revenue growth turns positive, allocation ratio can be increased to 5% to 8%.
Short-term investors: Need to judge based on technical aspects and market sentiment. Current revenue growth rate is negative, short-term catalysts are insufficient, and it is recommended to wait and see.
Key observation points:
- When revenue growth rate turns positive
- Whether gross margin can be maintained above 28%
- New orders situation and downstream demand changes
- Whether asset-liability ratio can decline
Appendix: Data Source Description
The financial data used in this report comes from East Money Data Center, and the data acquisition time is February 28, 2026.
Core Data Sources:
- Financial Indicators: https://datacenter.eastmoney.com/securities/api/data/get?type=RPT_F10_FINANCE_MAINFINADATA&filter=(SECUCODE="002248.SZ")
- Real-Time Market: https://push2.eastmoney.com/api/qt/stock/get?secid=0.002248
Disclaimer: This report is for reference only and does not constitute investment advice. Investors should make independent judgments based on their own situation and bear investment risks at their own discretion.
Author: Xin Viewpoint
Date: February 28, 2026
END
评论