Zheng Quan Zhi Xing·2025-08-22 10:44Core Viewpoint - The report highlights that the decline in lithium prices has negatively impacted the performance of Yongxing Materials, but the company has demonstrated excellent cost control measures to mitigate some of the adverse effects [2][3]. Financial Performance - In the first half of 2025, Yongxing Materials reported a revenue of 3.693 billion yuan, a year-on-year decrease of 17.78%. The net profit attributable to shareholders was 401 million yuan, down 47.84% year-on-year, while the net profit excluding non-recurring items was 326 million yuan, a decrease of 45.96% year-on-year [2]. - For Q2 2025, the company recorded a revenue of 1.905 billion yuan, a year-on-year decline of 13.1% but a quarter-on-quarter increase of 6.5%. The net profit attributable to shareholders was 209 million yuan, down 30.26% year-on-year, with a quarter-on-quarter increase of 9.39% [2]. - The average price of battery-grade lithium carbonate in Jiangxi for the first half of 2025 was 70,600 yuan per ton (including tax), a 32% year-on-year drop. In Q2, the average price was 65,000 yuan per ton (including tax), a 14% decrease from Q1 and a 39% decline year-on-year [2]. Cost Control - The company has shifted its sales model from primarily spot sales to a combination of spot and futures sales, which has helped reduce the impact of price fluctuations on profitability. In the first half of 2025, the sales volume of lithium carbonate was 12,050 tons, with a calculated unit cost of 41,200 yuan per ton, a year-on-year decrease of 19% [3]. - The company's ability to control costs effectively has been significant, with a unit gross profit of 20,300 yuan per ton, down 37% year-on-year [3]. Investment Outlook - Yongxing Materials is recognized as a leading player in the domestic lithium mica market, with significant cost advantages. The company is expected to maintain its market share during the industry downturn and is actively pursuing integrated expansion in mining and metallurgy to enhance resource security [3]. - The projected net profits for 2025-2027 are 872 million yuan, 1.197 billion yuan, and 1.491 billion yuan, respectively, with corresponding earnings per share (EPS) of 1.62 yuan, 2.22 yuan, and 2.77 yuan, leading to price-to-earnings (PE) ratios of 22x, 16x, and 13x [3].