Core Viewpoint - Zhengli New Energy (03677) has seen a significant stock price increase, attributed to its inclusion in the Hong Kong Stock Connect program, which is expected to enhance shareholder base and trading liquidity [1] Group 1: Stock Performance - Zhengli New Energy's stock surged over 14% during trading, with a current increase of 5.67%, reaching HKD 11.92, and a trading volume of HKD 213 million [1] Group 2: Market Position and Strategy - The company has been added to the Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect eligible securities list effective from September 8, which is anticipated to improve its market reputation and brand awareness [1] - According to a report by CMB International, Zhengli New Energy benefits from a lighter historical burden compared to many peers, and its management's strategy of standardizing cells and platforming battery packs enhances manufacturing efficiency, forming a core competitive advantage [1] Group 3: Financial Performance - Zhengli New Energy has achieved profitability in the last two reporting periods despite a high customer concentration, with industry-leading gross margins attributed to high capacity utilization, advanced manufacturing lines, and excellent management capabilities [1] - The company is expected to maintain scale effects and high capacity utilization at least until the end of 2026, with an anticipated improvement in customer structure further enhancing profit margins [1] - GAC Toyota is projected to become Zhengli's second-largest customer this year, and foreign brands are expected to contribute approximately half of Zhengli's revenue by 2027, driven by partnerships with major automotive manufacturers [1]

Core Viewpoint - Zhengli New Energy (03677) has seen a significant stock price increase, attributed to its inclusion in the Hong Kong Stock Connect program, which is expected to enhance shareholder base and trading liquidity [1][1]. Group 1: Stock Performance - The stock price of Zhengli New Energy surged over 14% during trading, with a current increase of 5.67%, reaching HKD 11.92, and a trading volume of HKD 213 million [1][1]. Group 2: Market Position and Strategy - The company has been added to the Hong Kong and Shenzhen Stock Connect eligible securities list effective from September 8, which is anticipated to improve its market reputation and brand awareness [1][1]. - According to a report by CMB International, Zhengli New Energy benefits from a lighter historical burden compared to many peers, and its management's strategy of standardizing cells and platforming battery packs enhances manufacturing efficiency, forming a core competitive advantage [1][1]. Group 3: Financial Performance - Zhengli New Energy has achieved profitability in the last two reporting periods despite a high customer concentration, with industry-leading gross margins attributed to high capacity utilization, advanced manufacturing lines, and excellent management capabilities [1][1]. - The company is expected to maintain scale effects and high capacity utilization at least until the end of 2026, with an anticipated improvement in customer structure further enhancing profit margins [1][1]. - GAC Toyota is projected to become Zhengli's second-largest customer this year, and foreign brands are expected to contribute approximately half of Zhengli's revenue by 2027, particularly through partnerships with Volkswagen for extended-range models [1][1].

Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue rising from 1,844.8 million RMB in 2024 to 3,172.0 million RMB, a growth of 71.9% [2][3] - Net profit improved from a loss of 130.0 million RMB in the previous year to a profit of 220.4 million RMB, indicating a strong recovery in profitability [2][3] - The gross margin increased from 9.9% to 17.9%, and the net profit margin shifted from -7% to 6.9%, reflecting enhanced operational efficiency [2][3] Revenue and Profitability - Revenue for the first half of 2025 reached 3,172.0 million RMB, up 71.9% from 1,844.8 million RMB in the same period of 2024 [3] - Gross profit surged by 210.5% to 568.7 million RMB, compared to 183.1 million RMB in the previous year [3] - The company achieved a net profit of 220.4 million RMB, a significant turnaround from a loss of 130.0 million RMB [3] Business Segments - The sales revenue from the power battery segment reached 2,985.0 million RMB, with a shipment volume of 7.63 GWh, both showing over 80% year-on-year growth [2][5] - The company has established deep partnerships with leading automotive manufacturers, including FAW Hongqi and GAC Trumpchi, and is actively involved in innovative electric platform development [5] - The energy storage business has benefited from strong overseas demand, with the 104Ah standardized cell becoming a leading product in global home energy storage [5] Technological Advancements - The company has made significant progress in advanced battery technologies, achieving an energy density of 400 Wh/kg for lithium metal batteries, and is steadily advancing in semi-solid and solid-state battery development [6] - The second-generation "three highs and one fast" aviation power battery has entered mass production, making the company the first in the industry to deliver batteries for fixed-wing manned aircraft [5] - Ongoing investments in R&D are aimed at maintaining a competitive edge in the battery industry, with plans to enhance production capacity by 10 GWh by the end of 2025 and an additional 15 GWh by the end of 2026, reaching a total capacity of 50.5 GWh [6]

股份代號 : 3677 （於中華人民共和國註冊成立的股份有限公司） 江蘇正力新能電池技術股份有限公司 Jiangsu Zenergy Battery Technologies Group Co., Ltd. 2025 中期報告 江蘇正力新能電池技術股份有限公司 Jiangsu Zenergy Battery Technologies Group Co., Ltd. 2025 中期報告 02 公司信息 董事會 執行董事 曹芳女士 （董事長兼執行董事） 陳繼程先生 于哲勛先生 非執行董事 張力先生 獨立非執行董事 目錄 02 公司信息 04 財務概要 05 管理層討論與分析 17 企業管治及其他資料 24 中期簡明綜合損益及其他全面收益表 25 中期簡明綜合財務狀況表 27 中期簡明綜合權益變動表 28 中期簡明綜合現金流量表 30 中期簡明綜合財務資料附註 40 定義 許志明先生 龔正良先生 肖瑉女士 審核委員會 龔正良先生 （主席） 肖瑉女士 張力先生 提名委員會 曹芳女士 （主席） 陳繼程先生 許志明先生 龔正良先生 肖瑉女士 薪酬與考核委員會 許志明先生 （主席） 曹芳女士 陳繼程先生 龔正良先生 肖瑉女 ...

Core Viewpoint - 招银国际 initiates coverage on 正力新能 (3677.HK) with a "Buy" rating and a target price of HKD 18, highlighting its low historical burden, high operational efficiency, and optimized customer structure driving both sales and profit growth [1][2] Group 1: Growth Potential - The company has significant growth potential due to a low base, with Frost & Sullivan forecasting a 29% compound annual growth rate (CAGR) for China's electric vehicle battery installation from 2024 to 2029 [1] - 正力 currently holds approximately 2% market share in China's power battery market, indicating substantial room for growth even with the current market dynamics dominated by 宁德时代 and 比亚迪, which together account for about 70% of the market [1][2] Group 2: Customer Structure and Profitability - The customer structure is continuously improving, with the top five customers accounting for over 80% of revenue, yet the company has achieved profitability in the last two reporting periods and maintains industry-leading gross margins (17.2% in 2H24 and 17.9% in 1H25) [2] - The expected contribution from foreign brands, particularly with 广汽丰田 becoming the second-largest customer and the partnership with 大众 for extended-range models, is projected to account for about half of 正力's revenue by 2027 [2] Group 3: Financial Forecast and Valuation - Revenue growth forecasts for 正力 from 2025 to 2027 are 50%, 76%, and 48% year-on-year, with gross margins reaching 18.2%, 18.9%, and 19.0% respectively, leading to net profits of RMB 569 million, RMB 1.307 billion, and RMB 1.880 billion [2] - The company’s historical burden is lighter than most peers, and its strategy of standardizing battery cells and platform-based battery packs enhances manufacturing efficiency, forming a core competitive advantage [2]

Group 1 - The core point of the article is that Zhengli New Energy (03677) has seen its stock price increase by over 5%, currently at HKD 11.55, with a trading volume of HKD 141 million [1] - The company has been included in the Hong Kong Stock Connect program, effective from September 8, which is expected to enhance its shareholder base and improve stock liquidity [1] - The board believes that this inclusion will further enhance the company's reputation and brand awareness in the capital market [1] Group 2 - On August 18, Zhengli New Energy signed a strategic cooperation agreement with Zero Gravity Aircraft Industry for the aviation energy system [1] - The cooperation involves the supply of aviation batteries for the RX1E series electric fixed-wing aircraft, which has received airworthiness certification from the Civil Aviation Administration of China [1] - This partnership marks the beginning of mass delivery for the RX1E series, the only commercially viable electric light sport aircraft in China, indicating a shift towards accelerated production [1]

Core Viewpoint - Zhengli New Energy (03677) has seen its stock price increase by over 5%, currently trading at 11.55 HKD with a transaction volume of 1.41 billion HKD, following its inclusion in the Hong Kong Stock Connect program [1] Group 1: Stock Performance - Zhengli New Energy's shares rose by 5.67% as of the latest report [1] - The trading volume reached 1.41 billion HKD, indicating strong market interest [1] Group 2: Strategic Developments - The company has been added to the Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect eligible securities list, effective from September 8 [1] - The board believes this inclusion will enhance the company's shareholder base and improve stock liquidity, as well as boost its reputation and brand awareness in the capital market [1] Group 3: Partnership and Product Development - On August 18, Zhengli New Energy signed a strategic cooperation agreement with Zero Gravity Aircraft Industry for the aviation energy system [1] - The RX1E series electric fixed-wing aircraft batteries, supplied by Zhengli New Energy, have received airworthiness certification from the Civil Aviation Administration of China, marking the start of mass delivery [1] - This collaboration is expected to enhance the product capabilities of the RX1E series, which is the only commercially viable electric light sport aircraft in China, entering a phase of accelerated mass production [1]

Core Viewpoint - Zhengli New Energy has emerged as a strong player in the battery industry, achieving significant revenue and profit growth in the first half of 2025, indicating potential undervaluation in the context of the overall market dynamics in the new energy vehicle sector [1]. Financial Performance - Zhengli New Energy reported revenue of 3.172 billion yuan, a year-on-year increase of 71.9%, with battery revenue reaching 2.985 billion yuan, up 81.9% [1]. - The gross profit margin improved from 9.9% to 17.9%, placing the company among the top tier in the industry [1]. - The net profit turned positive at 222 million yuan, marking a significant turnaround [1]. Industry Context - The battery industry has experienced a significant PE (Price-to-Earnings) adjustment since the end of 2021, influenced by rising raw material costs and slowing demand growth in the electric vehicle market [5][7]. - The average PE of leading companies like CATL increased dramatically from 39.49 in 2019 to 167.68 in 2021, reflecting the industry's rapid growth during that period [3]. Growth Drivers - Zhengli New Energy's production capacity is fully utilized, with a projected 50% increase in shipment volume year-on-year [11]. - The company has a diverse and high-quality customer base, including new energy vehicle manufacturers and state-owned enterprises, which reduces dependency on any single client and ensures stable orders [11]. - The company is advancing in technology, with products that meet high-performance standards, such as the exclusive supply of batteries for major automotive brands [13][14]. Future Outlook - The company is expected to maintain a revenue growth rate of around 50% for the full year of 2025, with profits potentially reaching 600 million yuan [16]. - The introduction of new production lines and the expansion of energy storage business are anticipated to contribute to revenue growth in the coming years [11][12]. - The ongoing development of solid-state battery technology is expected to enhance the company's competitive edge and open new revenue streams [15]. Investment Potential - Zhengli New Energy's high growth rate and strong profit elasticity suggest that its PE ratio can remain at a reasonable high level, indicating potential for market capitalization expansion [17]. - The company has a robust return on invested capital (ROIC) of 2.3% for the first half of the year, outperforming traditional savings rates, which highlights its ability to generate excess returns for investors [20].

Core Viewpoint - The company, Zhengli New Energy (03677), has been included in the Hong Kong Stock Connect under both the Shanghai and Shenzhen Stock Connect programs, effective from September 8, 2025, which is expected to enhance its shareholder base and trading liquidity [1] Group 1 - The inclusion in the Stock Connect programs is anticipated to accelerate the expansion of the company's shareholder base [1] - The company believes that this inclusion will improve the trading liquidity of its shares [1] - The move is expected to enhance the company's reputation in the capital markets and increase brand awareness [1]

Core Viewpoint - Zhengli New Energy (03677.HK) has been included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect eligible securities list, effective from September 8, 2025, which is expected to enhance the company's shareholder base and trading liquidity [1] Group 1 - The inclusion in the Stock Connect programs is anticipated to accelerate the expansion of the company's shareholder base [1] - The company believes this adjustment will improve the liquidity of its shares [1] - The board expresses gratitude to shareholders and investors for their ongoing support [1] Group 2 - The company aims to leverage its competitive advantages to further develop its business [1] - The goal is to create value for shareholders through continued business development [1] - The inclusion is expected to enhance the company's reputation and brand awareness in the capital markets [1]