XWXN(SH:688778) Minsheng Securities·2025-08-22 09:06Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index within the next 12 months [5]. Core Insights - The company reported a revenue of 7.534 billion yuan for the first half of 2025, representing a year-on-year growth of 19.58%, and a net profit attributable to shareholders of 307 million yuan, up 28.36% year-on-year, which aligns with expectations [1]. - In Q2 2025, the company achieved a revenue of 4.557 billion yuan, a year-on-year increase of 51.85%, and a net profit of 190 million yuan, reflecting a year-on-year growth of 48.44% [1][2]. - The company is solidifying its position as an industry leader, with lithium battery cathode material sales reaching 60,700 tons, a 35.50% increase year-on-year [2]. Summary by Sections Financial Performance - The company’s Q2 2025 gross margin was 10.26%, a decrease of 1.36 percentage points year-on-year, while the net profit margin was 4.2%, down 0.06 percentage points year-on-year [1]. - The company expects revenues of 16.637 billion yuan, 18.797 billion yuan, and 22.822 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 25.1%, 13.0%, and 21.4% [3][4]. Production Capacity and Projects - The company is accelerating its global capacity layout, with significant progress in domestic projects, including the completion of construction for a 30,000-ton lithium-ion battery material expansion project [2]. - Internationally, projects in France are advancing smoothly, including a 40,000-ton ternary material project [2]. Research and Development - The company is focusing on solid-state battery technology, achieving reliable production of oxide solid electrolytes and developing unique synthesis processes for lithium sulfide [3]. - The report highlights the company's strong technological advantages and clear growth trajectories in various business lines [3].