XWXN(SH:688778) Minsheng Securities·2025-10-26 06:13Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its technological advantages and clear growth trajectory in its business lines [7]. Core Insights - The company's performance in the first three quarters of 2025 met expectations, with revenue reaching 13.059 billion yuan, a year-on-year increase of 29.80%, and a net profit attributable to shareholders of 552 million yuan, up 41.54% year-on-year [3]. - In Q3 2025, the company reported revenue of 5.526 billion yuan, reflecting a significant year-on-year growth of 54.25% and a quarter-on-quarter increase of 21.25%. The net profit for the same period was 245 million yuan, marking a year-on-year increase of 91.05% [3]. - The company has seen a substantial increase in the sales volume of lithium battery cathode materials, reaching 99,900 tons in the first three quarters, a growth of 40.41% year-on-year, driven by government policies and innovations in 3C product applications [4]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a gross margin of 10.00%, a year-on-year increase of 0.91 percentage points, while the net profit margin was 4.52%, up 28.60 percentage points year-on-year [3]. - The company’s R&D investment grew by 25.07% year-on-year, focusing on high-nickel and solid-state battery materials, which are expected to enhance production efficiency and reduce costs [5]. - Revenue projections for 2025-2027 are estimated at 17.24 billion, 18.88 billion, and 22.42 billion yuan, with corresponding net profits of 777 million, 1.06 billion, and 1.36 billion yuan, reflecting growth rates of 57.3%, 36.4%, and 28.7% respectively [5][6]. Strategic Developments - The company has entered strategic partnerships with Zhongwei Co. and Greeenmei to strengthen its supply chain and ensure raw material security, with significant production targets set for the coming years [4]. - The company is advancing in high-nickel and solid-state technology, with successful large-scale production of high-voltage lithium cobalt oxide and solid-state electrolytes [5]. Valuation Metrics - As of October 24, 2025, the company's price-to-earnings (PE) ratios are projected to be 50, 37, and 29 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation trend [6].