XWXN(SH:688778) Guoxin Securities·2025-09-05 05:13Investment Rating - The investment rating for the company is "Outperform the Market" [5][23]. Core Views - The company has solidified its leading position in lithium cobalt oxide, with rapid growth in sales and a positive outlook for new material development [2][3]. - The demand for cobalt lithium is expected to increase significantly due to the inclusion of electronic consumer products in the recycling program starting in 2025, which will boost battery consumption [2]. - The company is enhancing its product offerings in the power battery cathode materials sector, with a focus on high voltage and high power lithium-ion batteries [2][3]. Financial Performance - In the first half of 2025, the company achieved a net profit of 307 million yuan, representing a year-on-year increase of 28%, with revenues of 7.534 billion yuan, up 18% year-on-year [1]. - The gross margin for the first half of 2025 was 9.99%, an increase of 0.48 percentage points year-on-year, while the net margin was 4.06%, up 0.28 percentage points year-on-year [1]. - In Q2 2025, the company reported revenues of 4.557 billion yuan, a 48% increase year-on-year and a 53% increase quarter-on-quarter [1]. Sales Growth - The sales volume of cobalt lithium cathode materials reached 28,800 tons in the first half of 2025, a 57% increase year-on-year, with Q2 sales of approximately 16,500 tons, up 34% quarter-on-quarter [2]. - The company maintained a market share of 52% in the cobalt lithium sector, reinforcing its industry-leading position [2]. Product Development - The company is advancing its solid-state battery materials and new structure materials, with ongoing production of oxide-based cathode materials and successful testing of lithium sulfide samples [3]. - The company is also developing differentiated products for various applications, including consumer electronics and electric vehicles, to enhance its competitive edge [3]. Profit Forecast - The profit forecast has been revised upward, with expected net profits of 789 million yuan, 986 million yuan, and 1.125 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 60%, 25%, and 14% [3][4].