Company Fundamentals - In the first half of 2025, the company achieved revenue of 2.246 billion yuan, a year-on-year increase of 26.2%, but the net profit attributable to shareholders decreased by 2.7%, indicating a "revenue growth without profit increase" situation [1] - The gross profit margin fell from 18.8% in the same period of 2024 to 14.95%, primarily due to the increase in the proportion of low-margin lead-acid battery business to 71.8%, while the high-margin lithium-ion battery business revenue shrank to 25.2% [1] - Trade receivables reached 2.371 billion yuan, accounting for 56% of current assets, and inventory surged by 71% to 881 million yuan, indicating significant cash flow pressure [1] Industry Policy and Environment - The energy storage industry is accelerating its transition to lithium batteries, but in the first half of 2025, the company's lead-acid battery revenue increased by 40%, while lithium battery revenue declined by 3.6% [2] - There are concerns about the company's over-reliance on short-term benefits from lead-acid technology driven by AIDC data center demand, which may face long-term technological replacement risks [2] Company Status - Despite mentioning breakthroughs in overseas markets, the company's overseas revenue in the first half of 2025 decreased by 22.6%, accounting for 17.8% of total revenue, creating a discrepancy with the expectation of growth from overseas factory establishment highlighted in a report by CICC [3] Market Environment - Since February 2026, the Hong Kong stock energy storage device sector has declined by 1.04%, while the Hang Seng Index has fallen by 1.10% during the same period, reflecting cautious market sentiment [4] - The company faces short-term debt pressure with only 606 million yuan in cash against short-term borrowings of 899 million yuan, leading to a conservative capital preference [4] Stock Price Movement Reasons - CICC released a rating report in December 2025, setting a target price of 22.9 HKD, indicating a potential upside of 58% from the then-current stock price [5] - As of February 20, 2026, the company's stock price was reported at 14.28 HKD, a 14% decline from the January 2026 peak of 16.60 HKD, suggesting that some investors may have taken profits after early positioning [5]

Core Viewpoint - The lead-acid battery recycling industry in China is rapidly growing, driven by the "dual carbon" goals, with a projected recycling volume of 4.758 million tons by 2025, despite a slight decline in market scale due to falling recycling prices [1][9]. Overview - Waste lead-acid batteries are classified as hazardous waste, and their recycling involves a series of regulated processes to extract valuable materials like lead, plastic, and sulfuric acid, aiming for resource recycling and environmental protection [2][3]. Market Policy - The Chinese government has implemented various policies to support the recycling industry, emphasizing environmental protection and resource sustainability, which creates a favorable policy environment for the lead-acid battery recycling sector [4][5]. Industry Chain - The lead-acid battery recycling industry in China has established a closed-loop industry chain, focusing on upstream supply, midstream processing, and downstream resource application, with a trend towards intensive, resource-efficient, and green development [6][7]. Current Development - The recycling technology for lead-acid batteries has continuously evolved, achieving high maturity and resource utilization rates, with a significant and stable demand for scrap batteries driven by various applications in automotive, communication, and energy sectors [9]. Competitive Landscape - The lead-acid battery recycling industry is undergoing structural changes, with increasing compliance requirements and a concentration of market players. As of 2025, there are 2,210 companies in the industry, with no new entrants, indicating a trend towards consolidation and the exit of non-compliant operators [10][11]. Industry Representative Companies - Major players in the industry include South Power, Camel Group, and Yuguang Gold Lead, with significant processing capacities, such as South Power's 1.2 million tons and Camel Group's 860,000 tons per year [10][11]. Development Trends - The industry is expected to see increased regulatory scrutiny, pushing for compliance and standardization, while technological innovations will enhance recycling efficiency and environmental performance. The market will likely consolidate around leading companies, with smaller firms either exiting or becoming service providers [12][13][14].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2026年1月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 雙登集團股份有限公司 呈交日期: 2026年2月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06960 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 150,836,200 | RMB | | | 1 RMB | | 150,836,200 | | 增加 / 減少 (-) | | | | | | | RMB | | | | 本月底結存 | | | 150,836,200 | RMB | | | 1 RMB | | 150,836,200 | | 2. 股份分類 | 普通股 | 股份 ...

Summary of the Conference Call for 双登股份 Company Overview - 双登股份 specializes in communication base stations and data center backup power supplies, with revenue split approximately evenly between these two segments [6][16] - The company was established in 2011 and has a significant focus on both lead-acid and lithium battery technologies for backup power solutions [6] Industry Insights - The domestic AIDC (Automatic Identification and Data Capture) industry has shown signs of recovery since late 2025, with expectations for increased investment and bidding activity in 2026 [3] - The backup power market is currently in a tight supply-demand balance, with lead-acid battery production constrained by environmental regulations and production line changes [4] - Global lithium battery penetration in backup power is over 60%, with the overseas market projected to reach RMB 250-300 billion [4][14] Key Financial Projections - For 2026, 双登股份 expects to ship 3.5-4 GWh of lead-acid backup power, up from 2.4 GWh in 2025, with a growth rate of 30%-50% anticipated for 2027 [10] - The company aims to capture a 50% market share in the mid-term, potentially contributing around RMB 400 million in profits [10] - The overall profit for the data center business is projected to reach RMB 1 billion by 2027-2028 [14] Lithium Battery Developments - 双登股份 has established a strong foothold in lithium battery technology, with plans to expand into large-scale energy storage as a second growth curve [7] - The company is collaborating with major clients like Alibaba and ByteDance to develop customized lithium battery products [13] - The iron-lithium battery solution from China is expected to replace the less safe ternary lithium batteries from Japanese and Korean manufacturers in overseas markets [11][12] Market Dynamics - The domestic market is currently dominated by lead-acid solutions, which account for over 95% of data center backup power due to their reliability [8] - In the overseas market, there is a rapid increase in lithium battery adoption driven by high-performance computing needs, despite safety concerns [9] Strategic Partnerships and Expansion - 双登股份 has formed partnerships with key players in the UPS and HVDC sectors, including Schneider and Eaton, and is planning to establish a 2 GWh high-rate production capacity in Malaysia [13] - The company is also working on entering the North American market, with plans to supply customized products to major operators [13] Future Outlook - The company is expected to benefit from the recovery in the IDC bidding process, leading to an upward trend in the backup power sector [5] - With a strong order backlog nearing RMB 10 billion, 双登股份 is positioned for significant growth in 2026, with profit expectations of RMB 5-5.5 billion [16] - Long-term projections suggest that the company could achieve a profit of RMB 1.5 billion by 2027-2028, indicating substantial growth potential [16]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 雙登集團股份有限公司 呈交日期: 2026年1月7日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06960 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 150,836,200 | RMB | | 1 | RMB | | 150,836,200 | | 增加 / 減少 (-) | | | | | | | RMB | | | | 本月底結存 | | | 150,836,200 | RMB | | 1 | RMB | | 150,836,200 | | 2. 股份分類 | 普通股 | 股 ...

Group 1 - China Merchants Securities maintains an "Accumulate" rating for JD Health (06618.HK), highlighting its "medicine + pharmacy" dual-driven model and leading market share in retail pharmacies, with O2O delivery times as fast as 9 minutes [1] - China Everbright Securities International maintains an "Accumulate" rating for Biren Technology (06082.HK), noting its position as the first company in China to use 2.5D chip packaging technology and its strong commercial progress with over 2 billion yuan in unfulfilled orders [1] - Huachuang Securities maintains a "Strong Buy" rating for Hesai Technology (02525.HK), emphasizing its leadership in the global LiDAR market and significant cost reductions achieved through self-developed chips, with a delivery target of 200,000 units by 2025 [1] Group 2 - CICC maintains an "Outperform" rating for Haidilao (06862.HK), reporting stable table turnover rates in H2 and better-than-expected cost optimization, with new brand strategies accelerating growth [2] - CICC maintains an "Outperform" rating for Shuangdeng Co. (06960.HK), identifying it as a leader in communication and data center energy storage, benefiting from increased capital expenditure in global AIDC and the trend of lithium battery replacing lead-acid [2] Group 3 - CITIC Securities maintains a "Buy" rating for Kintor Group (00148.HK), noting the positive impact of price increases on its CCL business and the expected growth in PCB business volume [3] - CITIC Securities maintains a "Buy" rating for Shougang Resources (00639.HK), highlighting its resource scarcity and leading cost control, with expected performance growth amid rising coking coal prices in 2026-27 [3] - Shenwan Hongyuan maintains a "Buy" rating for Beautiful Garden Medical Health (02373.HK), emphasizing its accelerated industry consolidation through acquisitions and a significant increase in store numbers [3] - China Merchants Securities maintains an "Accumulate" rating for Baiguoyuan Group (02411.HK), noting its stock incentive plan and strategic upgrades aimed at restoring same-store growth and opening pace [3]

Core Viewpoint - China International Capital Corporation (CICC) has initiated coverage on Shuangdeng Group Co., Ltd. (6960.HK), rating it as "outperform" with a target price of HKD 22.90, highlighting its leading position in the communication and data center energy storage sector and the growth potential from the global Artificial Intelligence Data Center (AIDC) market [1] Group 1: Market Position and Share - Shuangdeng Group is ranked first globally in battery shipments for communication and data center energy storage, with a market share of 11.1% in 2024 [1] - The company holds the top position among Chinese enterprises in the global data center energy storage market with a market share of 16.1% and ranks first in the global telecom base station energy storage market with a market share of 9.2% [1] Group 2: Customer Base and Revenue Contribution - By the end of 2024, Shuangdeng Group will cover nearly 30% of the top 100 global telecom operators and equipment manufacturers, including major clients like China Mobile, China Telecom, Ericsson, and France Telecom [2] - The company has an 80% coverage rate among China's top ten proprietary data center companies and a 90% coverage rate among the top ten third-party data center companies, serving large tech firms such as Alibaba, Baidu, and JD.com [2] - Data center and telecom base station energy storage combined will contribute over 88% of the company's revenue by the first half of 2025, indicating a high concentration in these high-growth areas [2] Group 3: International Expansion and R&D - The market previously underestimated Shuangdeng Group's potential for international expansion, with the company establishing subsidiaries in Singapore and the United States, and actively pursuing localized manufacturing to enhance international growth [3] - In 2024, the company's overseas business is expected to generate revenue of CNY 890 million, accounting for nearly 20% of total revenue, with a focus on local manufacturing to reduce geopolitical risks and improve responsiveness [3] - Shuangdeng Group has a strong R&D capability, holding 337 patents and participating in drafting 31 national and industry standards, which creates competitive barriers [3] - The company's lithium battery products for data centers support ultra-fast charging capabilities and integrate multi-level Battery Management Systems (BMS) for real-time monitoring, significantly enhancing safety and operational efficiency [3]

Core Viewpoint - The report from CICC highlights that Shuangdeng Co., Ltd. (06960) is a leading player in the domestic communication and data center energy storage market, serving major domestic cloud service providers (CSPs) and key overseas power equipment manufacturers. The initial coverage gives an "outperform" rating with a target price of HKD 22.90 [1]. Industry Insights - The energy storage market has significant growth potential, driven by declining battery costs and supportive policies, leading to rapid global development. The demand for data center energy storage, including backup power and regulation storage, is expected to be released quickly due to increased capital expenditure in computing power [2]. - The power storage sector is entering an upward cycle, with improved economics for independent storage in China and overseas energy structure transformations. The supply-demand relationship is expected to reach a turning point in Q3 2025, with leading energy cell manufacturers facing supply shortages, benefiting mid-tier manufacturers through order overflow and improved utilization rates [2]. Company Positioning - The company's energy storage business focuses on data center scenarios, positioning itself with leading domestic CSPs and major overseas power manufacturers. According to Frost & Sullivan, it is projected to hold the top market share in backup power for data centers in both domestic and global markets by 2024. The establishment of overseas factories is expected to enhance the company's growth potential [2]. - The market perceives the company's overseas progress as slow; however, it has already entered the overseas supply chain and positioned itself with key customers, indicating substantial future growth potential. Potential catalysts include continued unexpected increases in capital expenditure from terminal CSPs and ongoing progress in orders from mainstream CSPs both domestically and internationally [3]. Financial Projections - The company is projected to have an EPS of RMB 0.65 and RMB 1.29 for 2025 and 2026, respectively, with a CAGR of 24.8% from 2024 to 2026. The current stock price corresponds to a 10.1x P/E for 2026, while the target P/E is set at 16.0x, leading to a target price of HKD 22.90, representing a 58.0% upside potential, with an initial coverage rating of "outperform" [4].

Core Viewpoint - The report from CICC highlights that Shuangdeng Co., Ltd. (06960) is a leading player in the domestic communication and data center energy storage market, with a focus on serving major cloud service providers (CSPs) and overseas power equipment manufacturers. The initial coverage gives an "outperform" rating with a target price of HKD 22.90 [1]. Group 1: Market Opportunities - The energy storage market has significant growth potential, driven by the increasing capital expenditure in computing power and the declining costs of energy storage batteries, along with supportive policies. The demand for data center energy storage, including backup power and regulation storage, is expected to be rapidly released [2]. - The demand for power storage is entering an upward cycle, supported by improved economic viability of independent storage in China and overseas energy structure transformations. The supply-demand relationship is expected to reach a turning point in Q3 2025, with leading energy cell manufacturers facing supply shortages [3]. Group 2: Company Positioning - The company's energy storage business focuses on data center scenarios, positioning itself with leading domestic CSPs and major overseas power manufacturers. According to Frost & Sullivan, the company is projected to hold the largest market share in backup power for data centers in both domestic and global markets by 2024 [3]. - The market perceives the company's overseas progress as slow; however, it has already entered the overseas supply chain and positioned itself with key customers, indicating substantial future growth potential. Potential catalysts include continued unexpected increases in capital expenditure from terminal CSPs and ongoing progress in orders from mainstream CSPs [4]. Group 3: Financial Projections - The company is expected to achieve EPS of CNY 0.65 and CNY 1.29 for the years 2025 and 2026, respectively, with a CAGR of 24.8% from 2024 to 2026. The current stock price corresponds to a P/E ratio of 10.1x for 2026, while the company is given a target P/E of 16.0x, leading to a target price of HKD 22.90, representing a 58.0% upside [5].

Investment Highlights - Company initiates coverage on Shuangdeng Co., Ltd. (06960) with an "outperform" rating and a target price of HKD 22.90, based on a P/E valuation method corresponding to a 16.0X P/E for 2026 [1] - The energy storage market has significant growth potential, driven by the increasing capital expenditure in global computing power and the declining costs of energy storage batteries, alongside supportive policies [1] - The demand for data center energy storage, including backup power and regulation storage, is expected to be rapidly released due to increased capital spending in global computing power [1] Industry Outlook - The power storage sector is entering an upward cycle, with a turning point in supply and demand expected in Q3 2025, as domestic independent energy storage economics improve and overseas energy structure transformations and policy subsidies drive demand [1] - The supply-demand relationship is anticipated to improve, leading to a recovery in energy storage cell prices [1] Company Strategy - The company's energy storage business focuses on data center scenarios, positioning itself with leading domestic CSP manufacturers and top overseas power supply manufacturers, aiming for a leading market share in backup power for data centers in 2024 [2] - The company is optimistic about its international expansion through overseas factories, which will open up growth opportunities [2] - The company has already entered the overseas supply chain and positioned itself with key customers, contrary to market perceptions of slow overseas progress [2] Earnings Forecast and Valuation - The company forecasts EPS of RMB 0.65 and RMB 1.29 for 2025 and 2026, respectively, with a CAGR of 24.8% from 2024 to 2026 [2] - The current stock price corresponds to a 10.1x P/E for 2026, while the company is assigned a 16.0x P/E, leading to a target price of HKD 22.90, indicating a potential upside of 58.0% [2]