LOPAL(SH:603906) East Money Securities·2025-10-30 11:08Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [8]. Core Views - The company is leading in overseas expansion, having signed a contract with CATL to sell 157,500 tons of lithium iron phosphate (LFP) cathode materials, with a total sales amount exceeding 6 billion RMB [1]. - The LFP industry may experience a supply-demand reversal, with significant production increases noted among major LFP manufacturers [7]. Summary by Sections Company Overview - The company has established long-term supply agreements with LGES, Blue Oval, and Eve Energy, securing overseas LFP supply from 2026 to 2030 [7]. - The first phase of the 30,000-ton LFP project in Indonesia began production in 2025, with a second phase of 90,000 tons under construction [7]. - The company raised approximately 1.17 billion HKD through a new H-share placement and secured investments totaling 200 million USD from strategic investors [7]. Industry Insights - In October 2025, domestic battery manufacturers planned to produce 142 GWh, a month-on-month increase of 9.6%, while cathode material production rose by 2.46% [7]. - Among 31 major LFP manufacturers, 7 have utilization rates exceeding 100%, indicating strong demand and potential for price increases [7]. Financial Projections - Projected revenues for 2025, 2026, and 2027 are 81.4 billion, 145.2 billion, and 176.5 billion RMB, respectively, with year-on-year growth rates of 6.1%, 78.3%, and 21.6% [8]. - The company is expected to achieve a net profit of 1.6 billion RMB in 2025, with significant growth in subsequent years [8]. - Earnings per share (EPS) are projected to be -0.37, 0.24, and 0.63 RMB for 2025, 2026, and 2027, respectively [8].