YONGXING MATERIALS(SZ:002756) Yin He Zheng Quan·2025-08-22 08:22Investment Rating - The report maintains a "Recommended" rating for Yongxing Materials [3] Core Views - The company's performance has been negatively impacted by declining lithium prices and weak downstream demand in the steel sector. The average price of battery-grade lithium carbonate in Jiangxi was 70,600 CNY/ton in the first half of 2025, a 32% year-on-year decrease [8] - Despite the challenges, the company has demonstrated excellent cost control, which has mitigated some of the adverse effects of price declines. The sales model has shifted to a combination of spot and futures sales to reduce the impact of price volatility [8] - The company is a leading player in lithium mica in China, maintaining market share during industry downturns and actively pursuing integrated expansion in mining and metallurgy to enhance resource security [8] Financial Forecast Summary - Revenue is projected to decline from 80.74 billion CNY in 2024 to 76.71 billion CNY in 2025, with a revenue growth rate of -33.76% in 2024 and -4.98% in 2025 [2] - The net profit attributable to the parent company is expected to decrease from 10.43 billion CNY in 2024 to 8.72 billion CNY in 2025, reflecting a profit growth rate of -69.37% in 2024 and -16.43% in 2025 [2] - The gross profit margin is forecasted to decline from 18.15% in 2024 to 13.38% in 2025, with an expected recovery to 19.21% by 2027 [2] - The diluted EPS is projected to decrease from 1.94 CNY in 2024 to 1.62 CNY in 2025, with a gradual increase to 2.77 CNY by 2027 [2]