XTC(SH:600549) Changjiang Securities·2025-08-25 11:08Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a significant performance increase in H1 2025, achieving revenue of 19.178 billion yuan, a year-on-year increase of 11.75%. The net profit attributable to shareholders was 972 million yuan, a decrease of 4.37% year-on-year, while the net profit excluding non-recurring items was 923 million yuan, an increase of 7.53% year-on-year [2][4]. - In Q2 2025, the company achieved revenue of 10.802 billion yuan, a quarter-on-quarter increase of 28.95% and a year-on-year increase of 21.48%. The net profit attributable to shareholders was 581 million yuan, a quarter-on-quarter increase of 48.65% but a year-on-year decrease of 1.41% [2][4]. - The profit structure for H1 2025 showed that tungsten-molybdenum, new energy materials, and rare earths accounted for 74.98%, 20.06%, and 7.38% of total profits, respectively. The growth in Q2 was primarily driven by contributions from tungsten-molybdenum and new energy sectors [2][4]. Summary by Relevant Sections Tungsten-Molybdenum - The tungsten-molybdenum segment achieved a total profit of 1.268 billion yuan in H1 2025, a year-on-year decrease of 10.94%. In Q2 2025, the profit totaled 739 million yuan, a quarter-on-quarter increase of 40% [9]. - The increase in tungsten prices significantly contributed to the performance, with the company having a production capacity of 12,000 tons of tungsten concentrate. The domestic tungsten concentrate price began to rise sharply in Q2 2025, enhancing performance elasticity [9]. - The deep processing sector showed strong profitability, with cutting tools achieving a gross margin of over 40%. The company adjusted product prices to enhance market penetration and explore new applications for tungsten wire products [9]. New Energy Materials - The new energy materials segment reported a total profit of 339 million yuan in H1 2025, a year-on-year increase of 35.47%. In Q2 2025, the profit was 215 million yuan, a quarter-on-quarter increase of 73% [9]. - The demand for lithium cobalt oxide was strong, driven by favorable policies and consumer electronics demand. The company sold 28,800 tons of lithium cobalt oxide in H1 2025, a year-on-year increase of 57% [9]. Rare Earth Magnetic Materials - The rare earth magnetic materials segment achieved a total profit of 125 million yuan in H1 2025, a year-on-year increase of 6.71%. In Q2 2025, the profit was 59 million yuan, a quarter-on-quarter decrease of 11% [9]. - The company expanded its production capacity in the rare earth sector, with new projects expected to contribute to performance in the coming years [9].