XWXN(SH:688778) HTSC·2025-08-21 09:36Investment Rating - The report maintains a "Buy" rating for the company [2][8][6] Core Views - The company reported a revenue of 7.53 billion RMB for H1 2025, representing a year-on-year increase of 18.0%, with a net profit attributable to shareholders of 310 million RMB, up 27.8% year-on-year [2] - The significant growth in net profit is primarily driven by the increase in lithium cobalt oxide sales and inventory gains from rising cobalt prices [2] - The company is expected to outperform the industry in terms of sales growth for ternary materials and lithium cobalt oxide due to its competitive advantages [2] - The company has successfully achieved large-scale production of high-voltage lithium cobalt oxide and is making progress in solid-state battery materials [5][6] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 4.557 billion RMB, with a year-on-year increase of 47.8% and a quarter-on-quarter increase of 53.1% [3] - The net profit for Q2 2025 was 190 million RMB, reflecting a year-on-year increase of 47.5% and a quarter-on-quarter increase of 63.0% [3] - The gross margin and net margin reached 10.26% and 4.20%, respectively, with a decrease in expense ratios contributing to improved profitability [3] Sales and Production - The sales volume of lithium cobalt oxide in H1 2025 was 28,800 tons, a year-on-year increase of 56.6%, significantly outpacing the industry growth rate of 27.8% [4] - The company is expected to maintain a strong market share in high-end markets due to its technological advantages in lithium cobalt oxide [4] Product Development - The company is advancing its NL structure and solid-state battery materials, with successful trials and sample deliveries to major clients [5] - The solid-state electrolyte production has reached stable ton-level output, indicating progress in the development of next-generation battery materials [5] Profitability Forecast - The company has revised its profit forecasts for 2025-2027, expecting net profits of 746 million RMB, 901 million RMB, and 1.053 billion RMB, respectively, reflecting an upward adjustment of 12%, 11%, and 10% [6] - The target price for the company's stock is set at 66.60 RMB, based on a projected PE ratio of 45 times for 2025 [6]