CNANO(SH:688116) Dongguan Securities·2025-09-01 13:04Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [1][6]. Core Views - The company, Tianai Technology (688116), is a leading global producer of carbon nanotube conductive agents, with a focus on carbon nanotube conductive pastes and powders. The company reported a revenue of 654 million yuan for H1 2025, a year-on-year increase of 1.08%, and a net profit attributable to shareholders of 117 million yuan, also up by 1.07% year-on-year [3][5]. - The company has begun mass shipments of single-walled carbon nanotubes, with strong downstream demand expected to enhance profitability. It holds a 53.2% market share in China's carbon nanotube conductive paste market, maintaining its industry leadership [3][5]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 654 million yuan, with a net profit of 117 million yuan. The gross margin was 35.04%, down by 1.7 percentage points year-on-year, while the net margin was 17.72%, a slight decrease of 0.06 percentage points [3]. - For Q2 2025, the revenue was 319 million yuan, a year-on-year decrease of 6.08%, but the net profit showed a slight increase of 0.79% quarter-on-quarter, attributed to improved gross margins and increased investment income [3]. Market Position and Product Development - The company has a unique integrated advantage in producing carbon nanotube powders and pastes and is one of the few globally capable of large-scale production of single-walled carbon nanotubes. The performance advantages of its products are significant in enhancing battery performance, particularly in high-capacity density and fast-charging technologies [3][5]. - The report anticipates rapid growth in demand for lithium batteries and new battery technologies, which will drive the demand for new conductive agents. The company's production capacity for single-walled carbon nanotubes is expected to increase, further boosting profitability [1][5]. Earnings Forecast - The earnings forecast for the company indicates total revenue projections of 1.45 billion yuan for 2024, increasing to 1.96 billion yuan in 2025, and reaching 3.30 billion yuan by 2027. The net profit is expected to grow from 250 million yuan in 2024 to 769 million yuan in 2027 [5]. - The report estimates earnings per share (EPS) of 1.00 yuan for 2025 and 1.51 yuan for 2026, with corresponding price-to-earnings (PE) ratios of 51 and 34, respectively [5].