Ronbay Technology(688005)2025-01-17 02:53Investment Rating - The report assigns a "Buy" rating for the stock with a 12-month target price of Rmb36.00, while the current stock price is Rmb31.46 [3][22]. Core Insights - The company expects shipment growth in 2025 to exceed 20% compared to 2024, driven by a 10-20% demand increase in the European electric vehicle market due to carbon policy impacts and a doubling of new model launches from North American automotive clients [1][6]. - The company achieved a market share increase in the global ternary cathode market from 10% in 2023 to 14.4% in Q3 2024, with overseas customers accounting for 20% of sales [6][12]. - The company is expanding its production capacity, with a new factory in Poland expected to reach a capacity of 20,000 tons within 6-8 months after opening [6][12]. Financial Overview - Revenue projections show a significant increase from Rmb10.259 billion in 2021 to an estimated Rmb41.154 billion by 2028 [5]. - The net profit is expected to rise from Rmb911 million in 2021 to Rmb2.034 billion by 2028, indicating strong growth potential [5]. - The company’s earnings per share (EPS) is projected to grow from Rmb2.03 in 2021 to Rmb4.20 by 2028 [5]. Market Position and Strategy - The company is positioned as a leading supplier of high-nickel cathode materials, primarily serving major clients like CATL and others [8][12]. - The company plans to leverage its status as the largest supplier to CATL to capture more market share, especially in overseas markets [12]. - The company is also focusing on solid-state battery technology, which is expected to provide a long-term competitive advantage [12].