Zheng Quan Zhi Xing·2025-08-18 10:27Investment Highlights - Company reported a 38% quarter-on-quarter increase in net profit attributable to shareholders for Q2, aligning with expectations [1] - For the first half of 2025, the company achieved revenue of 21.32 billion yuan, a year-on-year increase of 6.2%, with a net profit of 730 million yuan, down 15.2% year-on-year [1] - The gross profit margin for the first half of 2025 was 12.1%, a decrease of 0.7 percentage points year-on-year [1] Product Performance - The company benefited from rising cobalt prices, with significant profit contributions from its four-cobalt products [2] - In the first half of 2025, the company shipped 188,000 tons of nickel, cobalt, phosphorus, and sodium products, a year-on-year increase of 34% [2] - The expected total shipment for Q2 of ternary precursors and four-cobalt products is 60,000 tons, a quarter-on-quarter increase of 30% [2] Financial Metrics - The company’s cash flow showed strong performance, with operating cash flow of 1.48 billion yuan in the first half of 2025, up 13.1% year-on-year [3] - Capital expenditures decreased by 28% in the first half of 2025, with Q2 capital expenditures down 55% quarter-on-quarter [3] - The company ended the first half of 2025 with inventory valued at 10.23 billion yuan, an increase of 4.1% from the beginning of the year [3] Profit Forecast and Valuation - The company revised its profit forecast for 2025-2027, now expecting net profits of 1.72 billion yuan, 2.02 billion yuan, and 2.7 billion yuan respectively, with year-on-year growth rates of 17%, 18%, and 33% [4] - The target price for the stock has been raised to 46 yuan, maintaining a "buy" rating based on a 25x PE for 2025 [4] - The company is recognized as the largest precursor manufacturer in China, with an increasing self-supply rate of nickel [4] Analyst Ratings - In the last 90 days, four institutions have issued ratings for the stock, all recommending a "buy" [8]