Core Viewpoint - Keda Manufacturing (600499.SH) reported a significant increase in revenue and net profit for the first three quarters of 2025, indicating strong financial performance and growth potential in the industry [1] Financial Performance - The company achieved total operating revenue of 12.605 billion yuan, representing a year-on-year growth of 47.19% [1] - The net profit attributable to shareholders reached 1.149 billion yuan, with a year-on-year increase of 63.49% [1] - Basic earnings per share were reported at 0.613 yuan [1]

Core Insights - Keda Manufacturing (600499.SH) reported a significant increase in revenue and net profit for Q3 2025, with revenue reaching 4.417 billion yuan, a year-on-year growth of 43.89% [1] - The net profit attributable to shareholders was 404 million yuan, reflecting a year-on-year increase of 62.65% [1] - For the first three quarters of 2025, the company achieved a total revenue of 12.605 billion yuan, up 47.19% year-on-year, and a net profit of 1.149 billion yuan, which is a 63.49% increase compared to the previous year [1] Revenue Growth - The growth in revenue is primarily attributed to increased sales in the overseas building materials and lithium battery materials segments [1] Profitability - The substantial rise in profit is linked to the enhanced performance in the aforementioned segments, indicating strong operational efficiency and market demand [1]

Financial Performance - The company's operating revenue for the third quarter reached ¥441,691.85 million, an increase of 43.89% compared to the same period last year[4] - Total profit for the quarter was ¥79,851.37 million, reflecting a significant increase of 139.53% year-over-year[4] - Net profit attributable to shareholders was ¥40,407.61 million, up 62.65% from the previous year[4] - The net profit after deducting non-recurring gains and losses was ¥36,161.16 million, representing a 53.25% increase year-over-year[4] - Basic earnings per share for the quarter were ¥0.212, a rise of 60.61% compared to the same period last year[4] - For the first three quarters of 2025, the company achieved operating revenue of RMB 12.605 billion, a year-on-year increase of 47.19%, and a net profit attributable to shareholders of RMB 1.149 billion, up 63.49% year-on-year[12] - Total operating revenue for the first three quarters of 2025 reached CNY 1,260,533.74 million, a significant increase of 47.2% compared to CNY 856,379.59 million in the same period of 2024[20] - Net profit for the first three quarters of 2025 was CNY 183,222.05 million, up 119.5% from CNY 83,692.42 million in the first three quarters of 2024[21] - Operating profit for the first three quarters of 2025 was CNY 209,336.47 million, an increase of 120.2% compared to CNY 95,028.60 million in the same period of 2024[21] - The total comprehensive income for the first three quarters of 2025 was CNY 200,361.91 million, significantly higher than CNY 75,277.97 million in the same period of 2024[23] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,991,358.35 million, an increase of 11.00% from the end of the previous year[4] - As of September 30, 2025, the total assets of the company amounted to RMB 299.14 billion, compared to RMB 269.50 billion at the end of 2024[16] - The company’s current liabilities totaled RMB 980.80 million, an increase from RMB 896.44 million at the end of 2024[17] - The company’s cash and cash equivalents stood at RMB 3.87 billion, up from RMB 2.95 billion at the end of 2024[15] - The fixed assets of the company increased to RMB 7.22 billion from RMB 6.40 billion at the end of 2024[16] - The total assets and equity of the company reached CNY 2,991,358.35 million and CNY 1,568,137.01 million respectively, showing a year-on-year increase[18] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥156,040.51 million, a substantial increase compared to the previous year[4] - The net cash flow from operating activities for the first three quarters of 2025 was CNY 156,040.51 million, a substantial increase from CNY 2,353.06 million in the first three quarters of 2024[25] - The cash and cash equivalents at the end of the third quarter of 2025 were CNY 283,891.38 million, up from CNY 255,458.02 million at the end of the third quarter of 2024[25] Business Segments - The significant growth in revenue and profit was primarily driven by the overseas building materials and lithium battery materials segments[6] - The overseas building materials business saw significant revenue growth due to the release of new capacities from projects in Kenya, Côte d'Ivoire, and Tanzania, along with optimized pricing strategies for tile products[12] - The lithium material business has reached a total production capacity of 150,000 tons/year for artificial graphite, with sales volume nearing 70,000 tons, representing a year-on-year increase of over 300%[13] Investments and Projects - The company decided to terminate its investment in the Honduras ceramic project due to increased investment risks and declining expected returns caused by macro policies and market conditions[13] - The company is progressing steadily with the Peru glass project, which is expected to be completed and put into production in 2026[12] Research and Development - Research and development expenses for the first three quarters of 2025 amounted to CNY 27,175.48 million, compared to CNY 24,468.36 million in the same period of 2024, reflecting a growth of 11.1%[20] Shareholder Information - The equity attributable to shareholders was ¥1,257,555.45 million, reflecting a growth of 9.55% year-over-year[4] - The company reported a weighted average return on equity of 3.41%, an increase of 1.22 percentage points from the previous year[4] - The company’s share of net profit from Qinghai Salt Lake Blue Science and Technology Co., Ltd. was RMB 271 million, based on an indirect holding ratio of 43.58%[13] Accounting Changes - The new accounting standards or interpretations will be implemented starting from 2025, affecting the financial statements from the beginning of that year[26] - The announcement was made by the board of directors of Keda Manufacturing Co., Ltd. on October 30, 2025[27]

Core Viewpoint - Keda Manufacturing has shown significant stock performance with a year-to-date increase of 72.89%, reflecting strong financial growth and market interest [1][2]. Financial Performance - For the first half of 2025, Keda Manufacturing achieved a revenue of 8.188 billion yuan, representing a year-on-year growth of 49.04% [2]. - The net profit attributable to shareholders for the same period was 745 million yuan, marking a year-on-year increase of 63.95% [2]. Stock Market Activity - As of October 29, Keda Manufacturing's stock price was 13.15 yuan per share, with a market capitalization of 25.22 billion yuan [1]. - The stock experienced a trading volume of 1.06 billion yuan, with a turnover rate of 0.43% [1]. - The stock has seen a net inflow of 872,200 yuan from main funds, with significant buying and selling activity from large orders [1]. Shareholder Information - As of June 30, 2025, the number of shareholders decreased by 19.87% to 59,700, while the average circulating shares per person increased by 24.80% to 32,144 shares [2][3]. - The total cash dividends distributed by Keda Manufacturing since its A-share listing amount to 3.864 billion yuan, with 2.299 billion yuan distributed in the last three years [3]. Business Segments - Keda Manufacturing's main business revenue composition includes overseas building materials (46.06%), building machinery (31.38%), lithium battery materials (11.33%), new energy equipment (8.68%), and others (2.55%) [1].

Event Overview - The 2025 Solid-State Battery Industry Conference and the Golden Ding Award Ceremony will take place on November 8, 2025, in Guangzhou [3][4]. - The event aims to focus on new technologies and build a new ecosystem in the solid-state battery industry [3][6]. Forum Scale and Participants - The forum is expected to host over 1000 participants, with major sponsors including Ru Tian Technology [2]. - Notable companies participating include CATL, BYD, Ganfeng Lithium, and many others from the solid-state battery and related sectors [2]. Agenda Highlights - The main forum will feature a series of presentations and discussions on advancements in solid-state battery technology, including the release of a global industry white paper [5][6]. - Key topics will cover solid-state electrolyte technologies, manufacturing processes, and innovations in battery materials [5][6]. Awards and Recognition - The event will also include the 2025 Golden Ding Awards, recognizing achievements in various categories such as innovation in solid-state battery materials and technology [6]. - Specific awards include the Pioneer Award for solid-state battery industrialization and the Most Investable Award in the solid-state battery sector [6]. Registration and Participation - Registration fees for attending the conference are set at 1688 RMB per person, which includes access to the event, meals, and the award ceremony [9]. - Various sponsorship and exhibition options are available, with prices ranging from 15,000 RMB for a standard booth to 48,000 RMB for a larger custom space [9].

Investment Rating - The report maintains a "Buy" rating for the company [3][10]. Core Insights - The company's core business includes building materials machinery and overseas building materials, with significant growth expected in H1 2025, achieving revenue of 8.2 billion yuan, a year-on-year increase of 49%, and a net profit of 750 million yuan, a year-on-year increase of 64% [1][16]. - The overseas building materials business is rapidly growing, particularly in Africa, with revenue reaching 3.77 billion yuan in H1 2025, a year-on-year increase of 90% and a gross margin of 36.8%, up 5.9 percentage points [1][18]. - The company has a strategic investment in Blue Lithium Industry, which is expected to benefit from the rebound in lithium carbonate prices, with Blue Lithium achieving sales of 20,600 tons of lithium carbonate and a net profit margin of 31% in H1 2025 [2][40]. Summary by Sections Company Overview - The company, originally established in 1992, has diversified into building materials machinery, overseas building materials, and lithium battery materials, actively following the "Belt and Road" initiative [16][32]. - The company has established production bases in seven African countries, operating 21 ceramic production lines, 2 glass production lines, and 2 sanitary ware production lines [18][32]. Overseas Building Materials - Africa is experiencing rapid urbanization, with a significant market opportunity for building materials. The region's urbanization rate is currently at 43.5%, similar to China's levels in 2005-2006, indicating substantial growth potential [2][57]. - The company has formed a joint venture with the SenDa Group to enhance its competitive edge in the African market, focusing on ceramics, glass, and sanitary ware [71]. Building Materials Machinery - The building materials machinery segment has shown stable profitability, with revenue of 2.57 billion yuan in H1 2025, a slight decline of 5% year-on-year due to high base effects [2][17]. - The company aims to extend its global footprint and enhance its service offerings through a combination of equipment, consumables, and maintenance services [17][31]. Lithium Materials Business - The company has developed a business structure that includes anode materials, lithium battery equipment, and lithium salt investments, with a significant stake in Blue Lithium Industry [40][41]. - The strategic investment in Blue Lithium has yielded substantial returns, contributing significantly to the company's net profit in recent years [40][41].

Investment Rating - The report maintains a "Positive" investment rating for the industry [16]. Core Insights - Africa is identified as a fertile ground for the outbound capacity of building materials, presenting a second growth curve market. The analysis highlights investment opportunities in Africa from perspectives of development potential, representative countries, and construction companies. Economic growth in Africa is expected to accelerate against a backdrop of a weakening US dollar [5][11]. - Key local leaders in the African building materials sector include Huaxin Cement, West Cement, Keda Manufacturing, and Leshushi, which are experiencing rapid growth and high profitability. The low market share of these companies is attributed to the later timing of their international expansion and the significant asset nature of cement, glass, and tiles, making market positioning crucial for achieving favorable competitive dynamics and profitability [5][12]. Summary by Sections Market Potential in Africa - Africa is the second-largest continent with 54 countries and a population of 1.4 billion. The UN projects that the population in sub-Saharan Africa will grow from 1.24 billion in 2024 to 2.09 billion by 2050, contributing over half of the global population increase. The African Development Bank forecasts GDP growth rates of 3.2%, 3.9%, and 4.0% for 2024-2026 [11][29]. Representative Countries - Outbound enterprises are focusing on underdeveloped regions in West and East Africa. Ghana serves as a significant port and distribution center in West Africa, impacting a market of 430 million people. The East African Community, comprising eight member states, is projected to have a total population of approximately 331 million by 2024 [11][50]. Construction Company Landscape - Chinese companies have a strong presence in Africa, with infrastructure projects accounting for 31.4% of total project value in 2020. Major players like China State Construction, China Railway Construction, and China National Materials are expanding their projects in Africa, indicating a positive outlook for the construction industry over the next 2-3 years [12][16]. Growth Characteristics of African Building Material Leaders - The outbound capacity of building materials is essential, with local leaders like Huaxin Cement and Keda Manufacturing showing rapid growth and high profitability. The expected cement demand in Africa for 2024 is 250 million tons, with a production capacity of 440 million tons. Huaxin Cement's capacity in Africa is 20.6 million tons, holding a market share of about 5% [13][14]. Keda Manufacturing and Leshushi - Keda Manufacturing is recognized as a rare building materials platform in Africa, with overseas revenue growing from 800 million yuan in 2018 to 4.7 billion yuan in 2024. Leshushi, a brand specializing in hygiene products, ranks first in the African market for baby diapers and sanitary napkins, with market shares of 20.3% and 15.6%, respectively [14][15].

Investment Rating - Industry Rating: Outperform the market (maintained rating) [4] Core Views - The construction materials sector has shown a 1.85% increase this week, underperforming the Shanghai Composite Index which rose by 3.24%, indicating a 1.4 percentage point lag [2][9] - The report highlights the significant potential for investment and consumption driven by urban renewal and underground pipeline construction, with an expected investment demand exceeding 5 trillion yuan during the 14th Five-Year Plan period [2] - The report suggests that low-valued consumer building materials, particularly pipes and coatings, are likely to benefit from these initiatives, with a recommendation to focus on leading companies in this sector [2] - The report emphasizes the importance of urban renewal, which includes the renovation of old residential areas and the establishment of safety management systems for buildings, indicating a robust demand for construction materials [2] - The report also recommends monitoring high-end electronic fabrics, African cement, and fiberglass products with price increase expectations [2] Summary by Sections Market Review - The construction materials sector has underperformed the broader market, with notable gains in sub-sectors such as other structural materials and specialized materials [9] - Key stocks that performed well include Fashilong (30.6%), Sifangda (18.3%), and Ruitai Technology (16.3%) [9] Recommended Stocks - The report recommends a focus on the following stocks: Western Cement, Huaxin Cement, Keda Manufacturing, China National Materials, Honghe Technology, China Jushi, Sankeshu, and Dongpeng Holdings [3][15]

Core Insights - Keda Manufacturing's stock price increased by 5.12% on October 24, reaching 12.94 CNY per share, with a trading volume of 372 million CNY and a turnover rate of 1.54%, resulting in a total market capitalization of 24.817 billion CNY. The stock has risen for four consecutive days, with a cumulative increase of 7.89% during this period [1] 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 includes the production and sales of building materials machinery, overseas building materials, lithium battery materials and equipment, and strategic investments in lithium salt business [1] - 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] Fund Holdings - According to data from the top ten heavy stocks of funds, one fund under Caitong Fund has a significant holding in Keda Manufacturing. The Caitong Huazhen Quantitative Stock Selection Mixed A (021147) held 642,600 shares in the second quarter, accounting for 2.35% of the fund's net value, ranking as the ninth largest heavy stock. The estimated floating profit today is approximately 404,800 CNY, with a floating profit of 578,300 CNY during the four-day increase [2] - Caitong Huazhen Quantitative Stock Selection Mixed A (021147) was established on May 6, 2024, with a latest scale of 34.6323 million CNY. Year-to-date return is 18.19%, ranking 4456 out of 8154 in its category; the one-year return is 18.1%, ranking 4027 out of 8025; and the return since inception is 21.87% [2]

Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [5] Core Insights - Infrastructure investment showed weakness in September, but the fourth quarter may benefit from increased funding and policy catalysts. The report highlights the importance of infrastructure as a stabilizing measure for the economy, with a focus on undervalued, high-dividend construction stocks [1][2] - The real estate sector saw a decline in sales area by 5.5% year-on-year from January to September, with a significant drop of 21.3% in September alone. However, the completion rate for real estate projects turned positive for the first time since 2024, indicating a potential recovery [2] - Cement demand is gradually weakening, with a production drop of 5.2% year-on-year from January to September. The report suggests that cement companies may seek to optimize supply and increase prices to recover profitability [3] - The flat glass market showed signs of improvement in September, with a slight increase in demand. However, overall production still declined by 5.2% year-on-year, and inventory levels have risen significantly [4] Summary by Sections Infrastructure Investment - Infrastructure investment from January to September showed a year-on-year increase of 1.1%, but September alone saw a decline of 4.7%. The report anticipates a recovery in the fourth quarter due to early fiscal funding and new policy financial tools [1][2] Real Estate Sector - Real estate sales area decreased by 5.5% year-on-year from January to September, with a notable drop of 11.9% in September. New construction area fell by 18.9% year-on-year, while completion area saw a slight increase in September, marking the first positive growth since 2024 [2] Cement Industry - Cement production from January to September was 1.259 billion tons, down 5.2% year-on-year. The average shipment rate was 41.3%, a decrease of 2.6 percentage points year-on-year. The report indicates that cement companies are likely to push for price increases to enhance profitability [3] Glass Industry - Flat glass production from January to September was 72.881 million weight cases, down 5.2% year-on-year. The report notes a slight improvement in demand in September, but overall inventory levels have increased significantly, indicating potential challenges ahead [4]