Tianneng Battery (SH:688819) Guoxin Securities·2025-09-05 03:31Investment Rating - The investment rating for the company is "Outperform the Market" [5][22]. Core Views - The company's lead-acid battery business remains stable, with a revenue of 191.5 billion yuan in H1 2025, down 5% year-on-year, and a gross margin of 15.97% [2]. - The lithium battery segment has shown rapid growth, achieving a revenue of 540 million yuan in H1 2025, up 193% year-on-year, with improved profitability [2]. - The company is accelerating technological iterations and diversifying its technology routes, including solid-state and sodium-ion batteries, with successful product developments and applications [3]. Financial Performance Summary - In H1 2025, the company reported a net profit of 869 million yuan, a decrease of 27% year-on-year, with total revenue of 20.917 billion yuan, down 3% year-on-year [1]. - For Q2 2025, the company achieved a revenue of 10.679 billion yuan, down 13% year-on-year but up 4% quarter-on-quarter, with a net profit of 448 million yuan, down 35% year-on-year but up 7% quarter-on-quarter [1]. - The company's gross margin for Q2 2025 was 15.14%, a decrease of 1.55 percentage points year-on-year, while the net margin was 4.32%, down 1.35 percentage points year-on-year [1]. Earnings Forecast and Financial Indicators - The company is expected to achieve net profits of 1.957 billion yuan, 2.304 billion yuan, and 2.602 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 26%, 18%, and 13% [3][4]. - The earnings per share (EPS) are projected to be 2.01 yuan, 2.37 yuan, and 2.68 yuan for the years 2025, 2026, and 2027, respectively [4]. - The company's price-to-earnings (P/E) ratios are forecasted to be 15.0, 12.8, and 11.3 for the years 2025, 2026, and 2027, respectively [4].