GEM(SZ:002340) Western Securities·2025-09-22 13:17Investment Rating - The report maintains an "Accumulate" rating for the company [5][11]. Core Insights - The company achieved a record high in self-supplied nickel and cobalt, effectively mitigating the impact of the cobalt raw material ban from the Democratic Republic of Congo [1][5]. - The company's revenue from key metal resource recycling business reached 6.467 billion yuan in H1 2025, a year-on-year increase of 2.56%, accounting for 36.83% of total sales [1]. - The nickel metal shipment from the company's Indonesian nickel resource project reached 44,000 tons in H1 2025, a year-on-year increase of 112%, with expectations of over 100,000 tons for the entire year [1]. - The company’s self-produced cobalt metal from the Indonesian project was 3,700 tons in H1 2025, a year-on-year increase of 125% [1]. Summary by Sections Key Metal Resource Recycling - The company’s key metal resource recycling business generated revenue of 6.467 billion yuan in H1 2025, up 2.56% year-on-year, representing 36.83% of total sales [1]. - Nickel metal shipments from the Indonesian project were 44,000 tons, a 112% increase year-on-year, with expectations of exceeding 100,000 tons for the full year [1]. New Energy Battery Materials - Revenue from the new energy battery materials business was 10.226 billion yuan in H1 2025, a 0.56% increase year-on-year, accounting for 58.24% of total sales [2]. - The shipment of cobalt tetraoxide reached 14,600 tons, a 39% increase year-on-year, benefiting from rising cobalt prices and improved self-supply [2]. - The company achieved a gross margin of 12.40% for cobalt tetraoxide, up 2.21 percentage points year-on-year [2]. Battery Recycling - The company’s battery recycling business generated revenue of 867 million yuan in H1 2025, a 0.54% increase year-on-year, accounting for 4.93% of total sales [3]. - The amount of recycled and dismantled power batteries reached 22,400 tons, a 37% increase year-on-year [3]. - The company is collaborating with 12 key industry players to establish a low-carbon circular industry innovation laboratory for power battery recycling [3]. Financial Projections - The company is expected to achieve net profits of 1.630 billion yuan, 2.317 billion yuan, and 3.444 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 59.8%, 42.1%, and 48.6% [3][10]. - Corresponding EPS for the years 2025, 2026, and 2027 are projected to be 0.32 yuan, 0.45 yuan, and 0.67 yuan [3][10].