Core Points - The Keda Ceramic Factory, the first tile production facility in Côte d'Ivoire, has officially commenced operations, marking a significant step in the country's industrialization efforts [1] - The project is a joint venture between Keda and Senda, with an initial investment of $54 million, and the first production line has an annual capacity of 12 million square meters, creating 1,000 jobs, including 500 long-term positions [1] - A second production line is expected to be operational by 2026, with an additional investment of $35 million, increasing the factory's annual production capacity to 21 million square meters [1] Industry Impact - The establishment of the ceramic factory indicates Côte d'Ivoire's commitment to diversifying its economic development model and enhancing local processing capabilities [1] - The government aims to provide competitive products to local consumers and reduce imports to achieve trade balance [1] - The growing real estate sector in Côte d'Ivoire creates a demand for locally produced tiles, offering a viable alternative to imported ceramic products for local builders [1]

Market Overview - The Shanghai Composite Index is at 3852.31 points with a decline of -0.21% as of 10:32 AM, and the total trading volume of A-shares is 1,075.764 billion yuan [1] Stocks with Death Cross - A total of 152 A-shares have seen their 5-day moving average cross below the 10-day moving average, indicating potential bearish trends [1] - Notable stocks with significant distance between their 5-day and 10-day moving averages include: - Songjing Co., Ltd. (688157) with a distance of -1.61% - Chunguang Technology (603657) with a distance of -1.02% - Pilin Bio (000403) with a distance of -0.93% [1] Detailed Stock Performance - Key stock performances include: - Songjing Co., Ltd. (688157): Today's change is -0.67% with a latest price of 40.09 yuan, which is -3.28% from the 10-day moving average [1] - Chunguang Technology (603657): Today's change is -3.47% with a latest price of 38.70 yuan, which is -6.79% from the 10-day moving average [1] - Pilin Bio (000403): Today's change is -0.52% with a latest price of 17.32 yuan, which is -2.64% from the 10-day moving average [1] Additional Stocks with Notable Changes - Other stocks showing significant changes include: - Jiangsu New Energy (603693): Today's change is -1.38% with a latest price of 12.87 yuan, which is -2.29% from the 10-day moving average [2] - Yongan Pharmaceutical (002365): Today's change is -1.04% with a latest price of 18.11 yuan, which is -1.45% from the 10-day moving average [2] - Mosi Co., Ltd. (001323): Today's change is -1.95% with a latest price of 28.16 yuan, which is -2.96% from the 10-day moving average [2]

Investment Rating - Industry rating is maintained at "Outperform the Market" [6] Core Insights - Infrastructure investment in August shows a narrowing year-on-year decline, with a focus on investment opportunities in the central and western regions [1] - Real estate sales area decreased by 4.7% year-on-year from January to August, with a significant drop of 11% in August alone [2] - Cement prices have started to rise after a prolonged period of decline, indicating potential recovery in profitability for cement companies [3] - The flat glass production showed a year-on-year decline of 4.5% from January to August, but the decline is narrowing, suggesting a potential improvement in demand [4] Summary by Sections Infrastructure Investment - From January to August, real estate development investment decreased by 12.9%, while narrow and broad infrastructure investments increased by 2% and 5.4% respectively [1] - Cumulative new special bonds reached 32,641.37 billion yuan, up 26.9% year-on-year, indicating strong support for infrastructure projects [1] Real Estate Market - New construction area decreased by 19.5% year-on-year from January to August, with a monthly decline of 19.8% in August [2] - Completion area saw a year-on-year decline of 17% from January to August, with a monthly drop of 21.2% in August [2] Cement Industry - Cement production from January to August was 1.105 billion tons, down 4.8% year-on-year, with August production at 148 million tons, a 6.2% decline [3] - The average cement price in August was 349 yuan per ton, showing a slight increase from earlier in the month [3] Glass Industry - Flat glass production from January to August was 64.818 million weight cases, down 4.5% year-on-year, with August production at 8.267 million weight cases, a 2% decline [4] - The market is showing signs of demand improvement as inventory levels decrease and production lines resume operations [4]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report The report focuses on the in - depth analysis of Keda Manufacturing through an institutional research. The company's performance in the first half of 2025 is remarkable, with significant growth in revenue and net profit, mainly driven by overseas building materials business. The company will continue to focus on its main business, and is expected to achieve further development through business expansion, cost optimization, and product - service synergy [23][24]. 3. Summary by Directory 3.1 Research Basic Situation - The research object is Keda Manufacturing, belonging to the special equipment industry. The reception time was September 12, 2025. The listed company's reception staff included the chairman, general manager, independent director, vice - president and financial controller, and board secretary [16]. 3.2 Detailed Research Institutions - The reception objects were all investors who participated in the company's 2025 semi - annual performance briefing online [19]. 3.3 Research Institution Proportion No information provided. 3.4 Main Content Data - **Asset Impairment Plan**: In the first half of this year, the company accrued 116 million yuan in asset impairment provisions, mainly from accounts receivable impairment in the building materials machinery segment, inventory impairment in the overseas building materials segment, and goodwill impairment of the previously acquired Italian F.D.S. Ettmar company. Future F.D.S. Ettmar goodwill will not have new impairments [23]. - **H2 Business Outlook**: Overseas building materials projects in Cote d'Ivoire and Kenya were put into production in mid - to - late June, which will contribute to the business scale in the second half. The ceramic machinery business received more orders in Q2, which is expected to support H2 performance. The lithium battery materials and new energy equipment businesses also showed good development trends in H1 [23]. - **Reasons for Net Profit Growth in H1 2025**: The company's revenue in H1 2025 was 8.188 billion yuan, and the net profit attributable to the parent was 745 million yuan, with year - on - year increases of 49.04% and 63.95% respectively. The main growth came from the overseas building materials business, which achieved 3.771 billion yuan in revenue, a year - on - year increase of about 90%, and its net profit accounted for about 42% of the company's current net profit attributable to the parent [23][24][25]. - **Accessories and Consumables Business**: In H1, the accessories and consumables business grew compared with the same period last year, and its proportion in the ceramic machinery business revenue increased. The ink business grew well. With the commissioning of the Turkish KAMI ink factory this year and the company's global expansion and local layout of accessories and consumables services, this business is expected to continue growing [25]. - **Overseas Building Materials Business Capacity**: As of now, the overseas building materials business has 11 production bases in 7 African countries, operating 21 building ceramic production lines, 2 glass production lines, and 2 sanitary ware production lines, with an annual production capacity of over 200 million square meters of building ceramics, 2.6 million pieces of sanitary ware, and 400,000 tons of building glass. In H1 2025, the joint - venture company produced about 98 million square meters of tiles, over 17 tons of glass, and over 1.4 million pieces of sanitary ware [25]. - **Brand Operation in Africa**: In the tile segment, the "Tefu" brand has wide recognition in parts of sub - Saharan Africa, and the high - end brand "Micasso" is being cultivated. In the sanitary ware segment, the "Frencia" brand is used to expand the East and West African markets. The glass business uses the "Tefu" brand for brand synergy [26]. - **Overseas Building Materials Debt Situation**: In H1, the joint - venture company repaid some euro loans and supplemented RMB loans, optimizing the financing structure. As of the end of June 2025, the joint - venture company's debt ratio decreased compared with the end of last year, and the overall financing interest rate also decreased. In the future, the joint - venture company will balance debt scale and business expansion, and control the debt ratio and foreign - currency debt scale [27]. - **Prospect of Ceramic Machinery Equipment Growth**: As the downstream customer investment demand in the overseas market is expected to recover, the company, as a leading ceramic machinery enterprise, will expand overseas business, promote the coordinated development of accessories and consumables services and ceramic machinery equipment, and carry out cross - industry applications to increase business volume [29]. - **Layout of Other Tracks**: The company will focus on its main business and will not consider entering new industries in the short - to - medium - term. But it will consider opportunities for industrial chain extension, product category expansion, and general application of ceramic machinery equipment within the main business [29]. - **Bluecore Lithium Industry Cost**: Although the domestic lithium carbonate market price was low in H1, Bluecore Lithium Industry's production cost was at a low level in the market and decreased quarter - on - quarter. In H1 2025, it had a net profit margin of 31% [29][30]. - **Price Outlook of Overseas Building Materials Products**: The average price of tiles in H1 increased compared with the same period last year and is expected to continue rising. The glass product price is at a good level. The company will optimize the sales structure and take cost - reduction measures to improve profitability [30][32].

Company Overview - Keda Manufacturing Co., Ltd. is located in Shunde District, Foshan City, Guangdong Province, and was established on December 11, 1996. The company was listed on October 10, 2002. Its main business involves the production and sales of building materials machinery, overseas building materials, lithium battery materials and equipment, and strategic investments in lithium salt business [1][2]. Financial Performance - As of June 30, 2025, Keda Manufacturing achieved operating revenue of 8.188 billion yuan, representing a year-on-year growth of 49.04%. The net profit attributable to shareholders was 745 million yuan, with a year-on-year increase of 63.95% [2]. - The company has cumulatively distributed cash dividends of 3.864 billion yuan since its A-share listing, with 2.299 billion yuan distributed in the past three years [3]. Stock Performance - On September 12, Keda Manufacturing's stock price fell by 2.08%, trading at 11.28 yuan per share, with a total market capitalization of 21.633 billion yuan. The stock has increased by 48.30% year-to-date, but has seen a decline of 4.89% in the last five trading days and 2.93% over the last 20 days [1]. - The stock's trading volume on September 12 was 1.05 billion yuan, with a turnover rate of 0.48%. The net outflow of main funds was 5.9687 million yuan [1]. Shareholder Information - As of June 30, 2025, the number of shareholders of Keda Manufacturing was 59,700, a decrease of 19.87% from the previous period. The average number of circulating shares per person increased by 24.80% to 32,144 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited ranked as the third-largest shareholder, holding 139 million shares, an increase of 24.3081 million shares compared to the previous period [3]. Business Segmentation - The revenue composition of Keda Manufacturing is as follows: overseas building materials 46.06%, building materials machinery 31.38%, lithium battery materials 11.33%, new energy equipment 8.68%, and others 2.55% [1]. - The company is classified under the Shenwan industry category of machinery equipment - specialized equipment - other specialized equipment, and is involved in several concept sectors including marine engineering equipment, coal chemical industry, energy conservation and environmental protection, and machinery [1].

Core Insights - The company reported a significant increase in the average price of overseas ceramic tile products in the first half of the year compared to the same period last year, indicating a positive trend in pricing strategy [1] - The company plans to dynamically adjust tile prices based on market conditions across various African markets [1] - The joint venture in Peru has established certain channel resources, positioning the company to enter the market promptly once the glass project is operational [1] Financial Performance - The overseas building materials business experienced a remarkable revenue growth of approximately 90% in the first half of 2025, alongside a gross margin increase of about 6 percentage points [3] - The growth is attributed to capacity release, product price increases, and technological upgrades, particularly in new project launches in Kenya and Côte d'Ivoire [3] Future Outlook - The company is being questioned about the sustainability of high growth rates in key markets like Africa and whether there are plans for further price increases for ceramic products [3] - The glass project in Peru is expected to commence production in 2026, and the company is anticipated to provide specific profit expectations for this project, as well as insights on how it will synergize with existing ceramic operations [3]

Group 1 - The company is committed to enhancing its global marketing network and local service points, particularly in major ceramic production areas [1] - The company aims to strengthen customer loyalty through supplementary parts and consumables business [1] - The company is focusing on consolidating its advantages in emerging markets like Southeast Asia and the Middle East while actively entering high-end markets in Europe and America to gradually increase its global market share [1] Group 2 - The company is currently constructing a production base in Turkey and is advancing preparations for subsidiaries in Egypt [1] - As of the first half of 2025, the company's building materials machinery business reported revenue of 2.57 billion yuan with a gross margin of 26.23% [3] - The company operates 11 production bases and over 100 service points globally, implementing differentiated product strategies tailored to various markets [3]

Core Viewpoint - The company has reported a significant improvement in the average price of its tile products in overseas markets during the first half of the year compared to the same period last year, and plans to adjust prices dynamically based on market conditions in Africa [1] Group 1: Overseas Business Performance - The joint venture in the overseas building materials sector has achieved a good increase in the average price of tile products compared to the same period last year [1] - The company intends to adjust tile prices dynamically based on the market conditions across various African markets [1] Group 2: South America Project - The joint venture for the glass project in Peru has accumulated certain channel resources locally [1] - The project is expected to enter the market promptly after production begins [1]

Core Viewpoint - The company is committed to enhancing its global marketing network and local service points, particularly in key ceramic production areas, to strengthen customer relationships and increase market share [1] Group 1: Business Strategy - The company aims to enhance customer loyalty through supplementary parts and consumables business [1] - There is a focus on consolidating advantages in emerging markets such as Southeast Asia and the Middle East while actively entering high-end markets in Europe and the United States [1] Group 2: Operational Developments - The construction of the company's production base in Turkey is currently underway [1] - Preparatory work for overseas subsidiaries, including in Egypt, is also progressing [1]

Group 1 - The company, Keda Manufacturing (600499), is optimistic about the long-term development trend of the global new energy industry despite facing structural challenges in the current market [1] - In addition to its stake in the lithium extraction company, Lanke Lithium Industry, the company operates its own lithium battery materials and new energy equipment business, providing anode materials and related firing equipment [1] - The company plans to continue advancing product research and development while focusing on cost reduction and efficiency improvement to enhance the core competitiveness of its related businesses [1]