XWXN(SH:688778) Guoxin Securities·2025-10-28 14:26Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's profitability in cathode materials remains robust, with solid-state battery material layouts accelerating [1] - The demand for lithium cobalt oxide is increasing due to the inclusion of electronic consumer products in the recycling program, leading to a significant recovery in consumer battery demand [1] - The company is enhancing its supply chain stability through strategic partnerships for raw materials and is advancing its global layout [2][3] Financial Performance - In Q3 2025, the company achieved a net profit of 245 million yuan, a year-on-year increase of 64%, with total revenue of 5.526 billion yuan, up 30% year-on-year [1] - The company’s lithium cobalt oxide sales reached 18,100 tons in Q3 2025, with a market share that remains the largest globally [1] - The projected net profits for 2025-2027 are 803 million, 1.020 billion, and 1.216 billion yuan, respectively, reflecting year-on-year growth rates of 63%, 27%, and 19% [3] Product Development - The company is focusing on technological innovation, with solid-state battery materials and new structural materials being industrialized [3] - The company has made significant progress in the production of high-voltage lithium cobalt oxide, with large-scale production of 4.53V products and trials for 4.55V products [1][3] - The company is developing differentiated products for various electric vehicle segments, including hybrid and high-end electric vehicles [2] Market Position - The company maintains a leading position in the lithium cobalt oxide market, with a strong focus on high-voltage and high-power ternary materials [2] - The company has signed long-term procurement agreements for key raw materials, enhancing its competitive edge and supply chain resilience [2]