Huida Sanitary Ware Faces Short-Term Pressure in Q3 Results, Eyes Recovery Ahead

Huida Sanitary Ware

CHINA: Huida Sanitary Ware reported its 2025 three-quarter results, with revenue/net profit/net profit attributable to non-controlling interests reaching 2.21 billion yuan (~US$ 311.3 million) / 0.015 billion yuan (~US$ 2.1 million) / -0.047 billion yuan (~US$ 6.6 million loss) for the first nine months, reflecting year-on-year declines driven by weakened terminal demand. In 2025 Q3, revenue and net profit after deducting non-recurring items stood at 0.785 billion yuan (~US$ 110.6 million) / -0.017 billion yuan (~US$ 2.4 million loss), marking a shift from profit to loss. Despite this pressure, the company continued to expand its channel Global Strategy layout across retail, online and engineering markets. Retail development progressed under the “Thousand Merchants and Ten Thousand Towns” plan, while cooperation with JD.com, Tmall, Douyin and Kuaishou strengthened the “online drainage -offline experience - repurchase conversion” model. The engineering channel refocused on hotels, public buildings and commercial construction.

Profitability was affected by gross margin compression and asset impairment. Gross margin for 2025 Q1-Q3 stood at 25.1%, and asset impairment losses of 25.76 million yuan (~US$ 3.6 million) further reduced margins. In 2025 Q3, gross margin reached 25.5%, supported by sequential improvement despite higher sales and management expenses. Looking ahead, the company expects net profit of 0.05/0.135/0.171 billion yuan (~US$ 7.0 million / US$ 19.0 million / US$ 24.1 million) in 2025-27. With a 25× PE valuation applied for 2026, the target price remains 8.90 yuan per share (~US$ 1.25) and the stock retains a “strong push” rating. Key risks include macroeconomic volatility, raw material price fluctuations and slower than expected channel expansion.

Source: Futubull