Drinda(SZ:002865) SINOLINK SECURITIES·2025-08-26 02:06Investment Rating - The report maintains a "Buy" rating for the company, anticipating significant profit recovery in the coming years [5]. Core Views - The company's revenue for the first half of 2025 was 3.66 billion RMB, a year-on-year decrease of 42.5%, with a net profit attributable to shareholders of -260 million RMB, down 58.5% year-on-year [2]. - The "anti-involution" strategy has been elevated to a national strategic level, leading to a recovery in battery prices towards covering costs. The price of 183N battery cells dropped to 0.24 RMB/W in Q2, a decline of 23%, but has since recovered to 0.29 RMB/W by August 20, 2025, due to supply-side reforms and industry consolidation [3]. - The company's overseas sales ratio increased significantly from 23.85% in 2024 to 51.87% in the first half of 2025, indicating a strong international market presence and strategic partnerships, such as with Turkish local component customers [4]. Summary by Sections Performance Review - In the first half of 2025, the company achieved a revenue of 3.66 billion RMB, with a net profit of -260 million RMB, aligning with expectations [2]. Operational Analysis - The decline in battery prices and rising costs due to silver paste price increases have pressured profitability in Q2. However, government policies aimed at reducing low-price competition are expected to benefit the company in the long run [3]. Product Expansion - The company is expanding its overseas sales and has established strategic partnerships to enhance its international production capabilities, which is expected to contribute to future profitability [4]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted to -385 million RMB, 619 million RMB, and 1.68 billion RMB respectively, reflecting anticipated recovery in profitability due to improved market conditions and overseas capacity expansion [5].