Core Viewpoint - The company reported its 1H25 performance, which met market expectations, showing significant growth in revenue and net profit [1][2]. Financial Performance - Revenue for 1H25 reached 16.42 billion yuan, a year-on-year increase of 31.7% and a quarter-on-quarter increase of 7.4% [1]. - Net profit attributable to shareholders was 466 million yuan, up 87.1% year-on-year and 36.2% quarter-on-quarter [1]. Industry Trends - The lithium battery sector experienced high growth in shipments during 1H25, with an estimated shipment volume of 45 GWh, representing a year-on-year increase of 76.9% [1]. - The energy storage business saw a significant increase in shipments, with a year-on-year growth of over 160%, driven by domestic and export demand [1]. - The company’s gross margins for power and energy storage batteries improved significantly, with power battery gross margins estimated at 18-19% (up 2.2 percentage points year-on-year) and energy storage battery gross margins at 15-16% (up 2.4 percentage points year-on-year) [1]. New Business Development - The company is actively expanding into new applications such as commercial vehicles and electric ships, with commercial vehicle shipments increasing by 310% in 1H25 [2]. - The company has secured partnerships with leading domestic truck manufacturers and gained a designated customer relationship with Volvo overseas [2]. - The company is advancing new technologies, including fast charging, manganese iron lithium, and solid-state batteries, with solid-state battery energy density reaching 430 Wh/kg [2]. Cost Management - The overall expense ratio remained stable at approximately 13% during 1H25, with significant improvements in management expense ratio [2]. - Research and development expense ratio was maintained at a high level of 5.2%, indicating strong investment in new products and technologies [2]. Profit Forecast and Valuation - The company maintains its profit forecasts for 2025 and 2026 at 1.543 billion yuan and 2.088 billion yuan, respectively [2]. - The target price is set at 24.20 HKD, with the current stock price corresponding to P/E ratios of 22.7x for 2025 and 16.6x for 2026, indicating a potential upside of 6.6% [2].
中创新航(03931.HK)：1H25业绩符合市场预期 盈利能力改善显著