Core Viewpoint - CICC has downgraded TianNeng Power's revenue forecasts for 2025 and 2026 by 30% and 28% to 61.21 billion and 65.51 billion yuan respectively, due to a focus on core business and a gradual contraction of trade operations [1] Group 1: Financial Performance - The company's 1H25 performance was below expectations, with revenue of 24.19 billion yuan, a year-on-year decline of 51.5% and a quarter-on-quarter decline of 9.6%. The net profit attributable to shareholders was 820 million yuan, down 11.7% year-on-year but up 282.7% quarter-on-quarter [2] - The company's lead-acid battery shipments in 1H25 slightly decreased year-on-year, but gross margin improved significantly. The total shipments were 53.5-54 GWh, a decline of 4.5-5% year-on-year, generating revenue of 18.29 billion yuan, down approximately 5% [3] - The lithium battery business saw significant revenue growth in 1H25, achieving 501 million yuan, a year-on-year increase of 174.6%, driven by increased demand in the domestic and U.S. markets [4] Group 2: Market Dynamics - The demand in the aftermarket for lead-acid batteries was weak due to macroeconomic conditions and the impact of replacement policies, leading to a decline in shipments despite a recovery in the front-end market [3] - Non-operating income and interest income decreased, impacting overall performance. Government subsidies and VAT refunds were down by 175 million yuan year-on-year, while futures income decreased by approximately 150 million yuan, and interest income fell by about 176 million yuan [5] Group 3: Future Outlook - Despite the downgrades, CICC remains optimistic about the company's position in the two-wheeler market and the potential for growth in lithium battery operations, as well as the company's efforts to expand into overseas markets [1]
中金：维持天能动力跑赢行业评级 目标价8.5港元