半年报显示，华友钴业经营活动产生的现金流量净额同比减少41.45%至16.18亿元，主要系根据市场情 况锁定原料价格，预付原料款所致。华友钴业管理费用、财务费用、研发费用同比分别下降2.62%、 14.8%和24.23%，研发费用大幅减少的原因主要是职工薪酬、材料耗用下降。 华友钴业在公告中表示，上游红土镍矿湿法冶炼产能全面释放，持续稳产超产，为下游镍产品、钴产品 提供了极具竞争力的原料保障；下游锂电材料端，聚焦战略核心客户，紧跟主流技术路径，坚持高端 化、全球化、差异化路线。华友钴业积极推进新应用场景下的深度合作，大圆柱电池材料实现规模化量 产。 华友钴业主要从事新能源锂电材料和钴新材料产品的研发、制造和销售业务，已形成了资源、新材料、 新能源三大业务一体化协同发展的产业格局。 半年报显示，2025年上半年，华友钴业三元正极材料出货量为3.96万吨，同比增长17.68%，其中超高镍 9系产品占比提升至六成以上，三元正极材料出口量占中国三元正极总出口量的57%；三元前驱体出货 量为4.21万吨，因主动减少部分低盈利产品出货，优化产品结构，较去年同期有所下滑；钴产品出货量 为2.08万吨，同比下降9.89%；镍 ...

Summary of Huayou Cobalt (603799.SS) Earnings Review and Analyst Briefing Company Overview - **Company**: Huayou Cobalt (603799.SS) - **Industry**: Basic Materials, specifically focusing on battery metals including nickel, cobalt, and lithium Key Financial Results - **1H25 Net Profit**: Rmb2.7 billion, up 62% year-over-year (YoY) [1] - **Earnings Per Share (EPS)**: Rmb1.61, up 62% YoY [1] - **Recurring Profit**: Rmb2.5 billion, up 50% YoY, excluding one-off items [1] - **Revenue Growth**: Total revenue increased by 24% YoY in 1H25, driven by strong performance in nickel and ternary cathode segments [25] Segment Performance - **Nickel Products**: Revenue from nickel products more than doubled YoY, significantly contributing to overall profit [26] - **Ternary Cathode**: Gross profit from ternary cathode increased by 23% YoY, driven by better realized average selling price (ASP) and sales volume [27] - **Cobalt Products**: Revenue from cobalt products decreased by 44% YoY, indicating challenges in this segment [35] - **Copper Products**: Gross profit from copper was down 41% YoY, attributed to lower realized ASP [26] Market Dynamics - **Ternary Battery Market Share**: Declined to 21% in 1H25 from 27% in 2024 and 32% in 2023, impacting shipments and margins for Huayou's battery material business [2] - **Price Outlook**: Recent price recovery in lithium and cobalt is expected to be short-lived, with prices likely to remain depressed due to a global surplus [2] Valuation and Price Target - **Revised Price Target**: Rmb32.4 per share, up from Rmb28.7, based on a sum-of-the-parts (SOTP) valuation [2] - **Theoretical Valuation Range**: Rmb10.1 to Rmb15.7 per share based on bottom-of-the-cycle analysis [2] - **Current Share Price**: Rmb44.07, indicating a downside of 26.5% from the target price [1] Risks and Outlook - **Negative Risk-Reward**: The risk-reward profile remains negative, with potential for further declines in earnings due to market conditions [2] - **Operational Challenges**: The balance sheet remains stretched, with operating cash flow declining by 41% YoY in 1H25 [29] - **Future Projects**: Ongoing projects in Indonesia and Zimbabwe are expected to enhance production capacity, particularly in lithium and nickel [33] Key Takeaways from Analyst Briefing - **MHP Nickel Production**: Strong shipments expected to sustain in 2H25, with MHP shipment in 1H25 at 120kt, up 40% YoY [33] - **Lithium Production Plans**: Full-year lithium production plan maintained at 45kt-LCE for 2025, with expectations to increase to 60-80kt-LCE in 2026 [33] - **Ternary Cathode Shipment Guidance**: Expected to reach 100kt in 2025, indicating over 50% YoY increase [33] Conclusion - Huayou Cobalt's financial performance in 1H25 shows significant growth driven by nickel and ternary cathode segments, but challenges in cobalt and copper markets persist. The company's outlook remains cautious due to market dynamics and operational risks, leading to a maintained sell rating.

Macro and Strategy Research - The economic data for July 2025 shows that the industrial added value increased by 5.7% year-on-year, lower than the expected 6.0% and previous value of 6.8% [3] - Retail sales of consumer goods grew by 3.7% year-on-year, below the expected 4.6% and previous value of 4.8% [4] - Fixed asset investment cumulative year-on-year growth is at 1.6%, also below expectations [4] Company Research: Huayou Cobalt Co., Ltd. (603799) - In the first half of 2025, the company achieved operating revenue of 37.197 billion yuan, a year-on-year increase of 23.78%, and a net profit attributable to shareholders of 2.711 billion yuan, up 62.26% [15] - Nickel product shipments increased significantly, with nickel product output reaching 139,400 tons, a year-on-year growth of 83.91% [16] - The company has made significant progress in cost reduction and efficiency improvement, with a sales net profit margin of 9.33%, an increase of 1.44 percentage points year-on-year [16] Industry Research: Metal Industry - Frequent bidding by major magnetic material manufacturers is expected to boost the price of praseodymium and neodymium oxide [10] - The steel industry is facing supply constraints due to tightened production policies, but demand may be impacted by construction site shutdowns [11] - Copper prices are expected to fluctuate due to insufficient fundamental support, with potential demand driven by seasonal inventory accumulation [11] - The rare earth market is seeing improved inquiry conditions, with light rare earth prices expected to be supported in the short term [12]

Core Viewpoint - Huayou Cobalt reported strong financial performance for the first half of 2025, with significant revenue and profit growth, driven by increased nickel production and strategic optimization of product offerings [4][5]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 37.197 billion yuan, a year-on-year increase of 23.8%, and a net profit attributable to shareholders of 2.71 billion yuan, up 62.3% [4]. - Q2 2025 revenue reached 19.35 billion yuan, reflecting a year-on-year growth of 28.3% and a quarter-on-quarter increase of 8.5% [4]. Group 2: Metal Production - Nickel product shipments increased by 84% year-on-year, totaling 139,000 tons, primarily due to the release of wet processing capacity from laterite nickel ore [5]. - Cobalt shipments decreased by 9.9% year-on-year to 21,000 tons, impacted by the export ban on cobalt from the Democratic Republic of Congo [5]. Group 3: Lithium Battery Materials - In H1 2025, shipments of ternary cathode materials reached 39,600 tons, a year-on-year increase of 17.7%, with high-nickel 9-series products accounting for over 60% of the total [6]. - The company actively reduced shipments of lower-margin products to optimize its product structure, resulting in a decline in shipments of ternary precursors to 42,100 tons compared to the same period last year [6]. Group 4: Project Developments - The company has added two new equity interests in laterite nickel mines in Indonesia, enhancing its nickel and cobalt resource reserves [8]. - The Pomalaa wet nickel project, with an annual production capacity of 120,000 tons, has commenced construction, while the Sorowako project is progressing well in its preparatory phase [8]. Group 5: Lithium and Lithium Battery Materials - The Arcadia lithium mine in Zimbabwe increased its resource reserves from 1.5 million tons to 2.45 million tons of lithium carbonate equivalent, with an improved grade of 1.34% [9]. - A lithium sulfate project with an annual production capacity of 50,000 tons is in the equipment installation phase, expected to be completed by the end of the year, which will further reduce lithium salt production costs [9]. - The first phase of the 50,000-ton ternary precursor project in Indonesia has achieved bulk supply, laying the foundation for entry into the North American market [9].

Group 1 - Huayou Cobalt achieved a revenue of 37.197 billion yuan in the first half of 2025, a year-on-year increase of 23.8%, with a net profit attributable to shareholders of 2.71 billion yuan, up 62.3% [5] - In Q2 2025, Huayou Cobalt's revenue reached 19.35 billion yuan, a year-on-year increase of 28.3% and a quarter-on-quarter increase of 8.5% [5] - The company reported a net profit of 1.46 billion yuan in Q2 2025, reflecting a year-on-year growth of 27% and a quarter-on-quarter growth of 16.5% [5] Group 2 - Sinopec Oilfield Service Company reported a total revenue of 37.05 billion yuan in H1 2025, a slight increase of 0.6% year-on-year, with a net profit of 490 million yuan, up 9.0% [6] - In Q2 2025, the company achieved a revenue of 19.2 billion yuan, a year-on-year increase of 4.99% and a quarter-on-quarter increase of 7.56% [6] - The net profit for Q2 2025 was 274 million yuan, showing a year-on-year decrease of 0.16% but a quarter-on-quarter increase of 25.44% [6] Group 3 - Keda Li reported steady growth in its main business, with a focus on becoming a platform company for robot components, particularly in precision processing and large-scale manufacturing [6] - The company is concentrating on its humanoid robot subsidiary, Kemon, which focuses on reducers and joint modules [6] Group 4 - Huatian Technology achieved a revenue of 7.78 billion yuan in H1 2025, a year-on-year increase of 15.81%, with a net profit of 226 million yuan, up 1.68% [7] - The semiconductor industry's recovery is expected to drive demand for the company's products, with anticipated accelerated performance in H2 2025 as capacity is gradually released [7] Group 5 - Xtep International reported a revenue increase of 7.1% and a net profit increase of 21.5% in H1 2025 [8] - The main brand and Saucony showed collaborative growth, with the main brand's revenue up 4.5% and professional sports revenue up 32.5% [8] - The company maintains its full-year guidance, expecting steady growth in the main brand's revenue and a 30-40% increase in Saucony's revenue [8] Group 6 - Aimeike reported a revenue of 1.3 billion yuan in H1 2025, a year-on-year decrease of 21.6%, with a net profit of 790 million yuan, down 29.6% [8] - The company experienced a decline in revenue and net profit in both Q1 and Q2 2025, with significant year-on-year decreases [8] Group 7 - Gilead Sciences-B reported a revenue of 0.01 billion yuan in H1 2025, with a net profit of -88 million yuan [8] - The company is fully transitioning to innovative drug research and development, with key clinical progress expected for its core metabolic disease treatment products by the end of this year to early next year [8]

Summary of Huayou Cobalt Co., Ltd. Conference Call Company Overview - **Company**: Huayou Cobalt Co., Ltd. - **Industry**: New Energy and Materials - **Date**: 2025 H1 Conference Call Key Financial Performance - **Revenue**: 371.97 billion CNY, up 23.78% YoY [2][3] - **Net Profit**: 27.1 billion CNY, up 62.26% YoY [2][3] - **Total Assets**: 1,462.73 billion CNY [2][3] - **Total Liabilities**: 390.81 billion CNY [3] - **Sales Volume**: - Ternary cathode materials: 39,600 tons, up 17.68% YoY [2][3] - Nickel products: 13,940 tons, up 83.91% YoY [3] R&D and Innovation - **Patents**: 115 new patent applications and 42 patents granted in H1 2025, totaling 1,488 applications and 604 granted [2][4] - **Technological Advancements**: MHP project exceeded expectations with a production of 120,000 tons, achieving a 30% annualized capacity overrun due to process improvements [4][9] Global Expansion and Resource Acquisition - **International Projects**: - New investments in two nickel ore projects in Indonesia [6] - Increased lithium reserves in Zimbabwe's Arcadia lithium mine to 2.45 million tons [6] - Batch supply achieved for the 50,000 tons ternary precursor project in Indonesia [6] - **Resource Control**: Secured 2.45 million tons of lithium, 6 million tons of nickel, and 600,000 tons of cobalt [25] Cost Management and Efficiency - **Cost Reduction**: - Average financing cost decreased by 30 basis points YoY [7] - Financial expenses down 14.8% YoY [7] - **Production Cost Management**: Enhanced standard cost accounting and monthly cost analysis led to further production cost reductions [7] ESG Initiatives - **Carbon Reduction**: Achieved a carbon reduction of approximately 690,000 tons [8] - **Recognition**: Awarded as a national-level green supply chain management enterprise and included in the S&P Global Sustainability Yearbook 2025 [8] Market Outlook and Strategic Planning - **Ternary Cathode Material Forecast**: Expected annual shipment of 85,000 tons, with total scale exceeding 100,000 tons including 3C consumer electronics [11] - **Nickel Price Outlook**: Long-term growth potential with annual demand expected to grow by 5% to 8% [15] - **Lithium Market**: Anticipated production capacity of 45,000 tons for lithium salts in 2025, with flexible plans for 2026 based on market conditions [15] Challenges and Risks - **Congo Cobalt Export Ban**: Positive impact on the company, with expectations of price increases due to market adjustments [10] - **Inventory Management**: Controlled production to manage inventory levels, leading to a temporary decrease in cobalt shipment volume [30] Conclusion Huayou Cobalt Co., Ltd. demonstrated strong financial performance in H1 2025, driven by significant growth in revenue and net profit. The company is actively expanding its global footprint, enhancing its R&D capabilities, and implementing effective cost management strategies. With a focus on ESG practices and a positive market outlook, Huayou is well-positioned for future growth despite facing challenges in the cobalt market.

Group 1 - Hubei Tianmen City government signed a cooperation agreement with Henan Lithium Environmental Technology Co., Ltd. for a comprehensive utilization project of lithium-ion batteries, with a total investment of 300 million yuan [2] - Zhonghuan Electric officially entered the global supplier system of CATL, receiving its first order for commercial vehicle battery swap station equipment [3] - The construction of a 5GWh battery cell production line in Yunnan, with a total investment of 1.5 billion yuan, has commenced [4] Group 2 - Fengshan Quanluo announced that its semi-solid battery electrolyte is currently in testing or cooperative development with at least three clients [7] - Leap Motor reported a revenue of 24.25 billion yuan for the first half of 2025, a year-on-year increase of 174%, and achieved a net profit of 30 million yuan, marking its first half-year profit [9] Group 3 - Huayou Cobalt released its 2025 semi-annual report, showing a revenue of 37.197 billion yuan, a year-on-year increase of 23.78%, and a net profit of 2.711 billion yuan, a year-on-year increase of 62.26% [11] - Chuangneng New Energy signed a long-term strategic cooperation agreement with New Zobang to develop high-safety, long-life, low-resistance green electrolyte solutions [13] Group 4 - The U.S. Department of Energy announced plans to release nearly $1 billion in funding opportunities, with over half allocated for domestic battery materials recycling [15] - POSCO Future M and Zhongwei New Materials signed a cooperation agreement to advance the business of lithium iron phosphate cathode materials [17] - The Norwegian Automobile Importers Association established a new company for the recycling and processing of high-energy batteries, ensuring the recycling of valuable metals [19]

Core Viewpoint - The article highlights the strong performance of Huayou Cobalt in the first half of 2025, driven by significant growth in nickel and cobalt product sales, alongside strategic expansions in resource development and market positioning within the lithium battery industry [2][4][10]. Financial Performance - In the first half of 2025, Huayou Cobalt achieved total revenue of 37.20 billion yuan, a year-on-year increase of 23.78% [3] - The net profit attributable to shareholders reached 2.71 billion yuan, marking a 62.26% increase compared to the previous year [3] - The company's net profit after deducting non-recurring gains was 2.59 billion yuan, up 47.68% year-on-year [3] Product Performance - Nickel product shipments totaled 139,400 tons, representing an impressive year-on-year growth of 83.91% [5] - Revenue from nickel ore and intermediate products surged by 137.54% and 68.32%, respectively, significantly outpacing other product categories [6] - Nickel and nickel intermediate products accounted for 49.4% of total revenue and 57.9% of gross profit during the reporting period [7] Resource Development - The company is actively developing nickel-cobalt resources in Indonesia, with new investments in two nickel mines and ongoing projects aimed at increasing nickel production capacity [8] - The Pomalaa wet process project is expected to produce 120,000 tons of nickel annually, while the Sorowako project is in the preparatory stages for a 60,000-ton capacity [8] Market Dynamics - The global cobalt market has seen a significant improvement in supply-demand dynamics, with cobalt prices rebounding after a period of oversupply [9] - Huayou Cobalt's gross margin for cobalt products increased by 15 percentage points to around 32%, mitigating the impact of declining cobalt shipment volumes [9] Strategic Positioning - The company has established a strong presence in the supply chains of major electric vehicle manufacturers, including Tesla, Volkswagen, and BMW, through strategic agreements and product supply [9] - Huayou Cobalt is focusing on high-end applications and global partnerships, particularly in the large cylindrical battery materials market, which is expected to be a key growth area [10] Future Outlook - The company anticipates that the price stabilization of key raw materials like nickel and cobalt will support a recovery in market share for ternary materials in the battery sector [10] - Huayou Cobalt's integrated business model positions it well to navigate industry fluctuations and capitalize on future growth opportunities, with projections indicating potential revenue exceeding 100 billion yuan in the coming years [10]

东吴证券研报指出，华友钴业25H1归母净利润27.1亿元，同+62.3%，其中25Q2归母净利润14.6亿元， 同环比+27%/16.5％。此前预告25H1归母净利26-28亿元，业绩符合预期。盈利端，25H1华越、华飞贡 献净利润合计12.6亿元，MHP镍成本1.2万美金，按Q2镍均价1.55万美金/吨，预计单吨利润0.35万美 金，火法基本盈亏平衡，我们预计公司25年镍利润贡献30-35亿。考虑目前镍价触底，未来价格弹性 大。钴价上行Q2起释放业绩弹性，下半年可能迎来第二波涨势。Q2三元正极出货环比高增，全年有望 增长90%+。考虑镍仍处于底部，给予25年15xPE，目标价53元，维持"买入"评级。 ...

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved record performance in the first half of 2025, with revenue of 37.2 billion yuan, a year-on-year increase of 23.8%, and a net profit attributable to shareholders of 2.71 billion yuan, up 62.3% year-on-year [1] - Nickel product shipments increased by 84% year-on-year, supported by the addition of two new nickel mines and a strong performance in the wet process projects [2] - The resource volume of the Arcadia lithium mine increased from 1.5 million tons to 2.45 million tons, with production costs continuously declining [3] - Cobalt prices surged due to supply constraints from the Democratic Republic of Congo, although cobalt product shipments saw a slight decline of 9.89% year-on-year [4] - The company’s positive material shipments grew against the trend, with a 17.68% increase in ternary cathode materials [5] - Future profit forecasts indicate a net profit of 5.73 billion yuan in 2025, with significant growth expected in the following years [6] Financial Summary - The company reported a revenue of 60.946 billion yuan for 2024, with projections of 67.584 billion yuan for 2025, reflecting a growth of 10.89% [8] - The net profit attributable to shareholders is expected to reach 5.729 billion yuan in 2025, representing a year-on-year increase of 37.89% [8] - Earnings per share (EPS) is projected to grow from 2.44 yuan in 2024 to 3.37 yuan in 2025 [8]