Yahua Group(SZ:002497) EBSCN·2026-01-20 14:47Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company achieved impressive Q3 performance in 2025, with revenue of 6.047 billion yuan, a year-on-year increase of 2.07%, and a net profit attributable to shareholders of 334 million yuan, up 116.02% year-on-year. This growth is attributed to stable orders from high-quality customers and improved operational efficiency [1] - The demand for energy storage is expected to rise, with global lithium battery shipments projected to reach 620 GWh in 2025, a 77% increase year-on-year, and 960 GWh in 2026, a 54.8% increase. This trend is expected to create a favorable supply-demand landscape for lithium [2] - The company has established a diversified lithium resource guarantee system through self-controlled and purchased mines, ensuring stable raw material supply. The Kamativi lithium mine in Zimbabwe has a processing capacity of 2.3 million tons per year [2] - The company is advancing its solid-state battery layout, with plans to start building a lithium sulfide pilot line in 2026, achieving industry-leading product specifications [3] - The company is actively participating in mergers and acquisitions in the civil explosives industry, aiming to expand capacity and business reach, particularly in Africa and Australia [3] Financial Summary - The company forecasts a net profit of 610 million yuan for 2025, a decrease of 36.3%, and an increase to 1.31 billion yuan in 2026, reflecting a 5.6% rise. The projected net profit for 2027 is 1.59 billion yuan, with P/E ratios of 44, 21, and 17 for 2025, 2026, and 2027 respectively [3] - Revenue is expected to decline to 7.716 billion yuan in 2024, followed by a recovery to 8.693 billion yuan in 2025, and further growth to 11.757 billion yuan in 2026 and 14.745 billion yuan in 2027 [4] - The company's gross margin is projected to improve from 13.5% in 2023 to 25.4% in 2027, indicating enhanced profitability [11]