CNANO(SH:688116) Dongguan Securities·2025-05-07 08:54Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [10]. Core Insights - The company, Tianai Technology (688116), is a leading global producer of carbon nanotube conductive agents, with a focus on single-walled carbon nanotubes, which are expected to enhance profitability [4][8]. - In 2024, the company achieved a revenue of 1.448 billion yuan, a year-on-year increase of 3.13%, while the net profit attributable to shareholders decreased by 15.8% to 250 million yuan due to prior year gains from subsidiary equity transfers [8]. - The first quarter of 2025 saw a revenue of 335 million yuan, reflecting a 9% year-on-year growth, and a net profit of 58 million yuan, up 8.1% year-on-year [8]. Summary by Sections Company Overview - Tianai Technology is recognized as the market leader in carbon nanotube conductive paste, holding a 53.2% market share in the domestic market for carbon nanotube conductive pastes [8]. Financial Performance - The company reported a gross margin of 35.18% in 2024, an increase of 1.58 percentage points year-on-year, while the net margin was 17.19%, down 4.14 percentage points [8]. - For Q1 2025, the gross margin was 33.19%, a decrease of 1.26 percentage points year-on-year, with a net margin of 17.25%, down 0.2 percentage points [8]. Product Development and Market Position - The company has developed four generations of carbon nanotube conductive paste products, with significant performance advantages in high-density, fast-charging battery applications [8]. - The demand for single-walled carbon nanotubes and related composite products is expected to grow, particularly in solid-state battery applications, with the company having secured substantial orders from battery manufacturers [8]. Future Outlook - The company completed a private placement raising approximately 800 million yuan, aimed at expanding production capacity for single-walled carbon nanotube conductive materials, which is anticipated to enhance profitability [8]. - Earnings per share (EPS) are projected to be 1.11 yuan and 1.44 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 40 and 31 [8].