Zhejiang Tiantie Industry (SZ:300587) Great Wall Securities·2025-06-09 08:28Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [4][18]. Core Viewpoints - The company is accelerating its business transformation and continuously expanding its solid-state battery layout, which is expected to benefit from advancements in cutting-edge technologies [1][2]. - The company reported a revenue of 2.136 billion yuan for 2024, representing a year-on-year growth of 41.69%, and a net profit attributable to shareholders of 15.2042 million yuan, up 102.33% year-on-year [1]. - The company is focusing on enhancing its lithium battery industry chain and product structure, with new production capacities expected to strengthen its strategic layout in the lithium battery sector [9][10]. Financial Summary - The company's projected revenue for 2025 is 2.566 billion yuan, with a year-on-year growth rate of 20.2% [1]. - The net profit attributable to shareholders is expected to reach 79 million yuan in 2025, reflecting a significant increase of 416.9% year-on-year [1]. - The company is expected to achieve a return on equity (ROE) of 2.9% in 2025, improving to 6.9% by 2027 [1]. Business Segmentation - In 2024, the company's rail engineering rubber products business is projected to generate revenue of 4.65 billion yuan, a year-on-year increase of 54.69% [2]. - The lithium compound series products are expected to generate revenue of 3.14 billion yuan, although this represents a decline of 34.34% year-on-year [2]. - The company is actively developing various new damping products to meet market demands and has established a solid foundation for its lithium compound business through its subsidiaries [2][3]. Strategic Partnerships - The company has signed a strategic cooperation framework agreement with Shenzhen Xinjie Energy Technology Co., Ltd. to collaborate on solid-state lithium metal anode materials and new material research [3][8]. - This partnership aims to enhance resource integration and strengthen collaboration in the development of new lithium metal anode materials [8]. Future Outlook - The company is expected to benefit from the long-term demand trends in the rail transit industry and its ongoing efforts to strengthen its lithium battery business, leading to improved performance in the coming years [10]. - The projected net profits for 2025 to 2027 are 79 million yuan, 140 million yuan, and 213 million yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 80, 45, and 30 [10].