GEM(SZ:002340) Huaxin Securities·2026-01-26 00:24Investment Rating - The report assigns a "Buy" investment rating for the company, indicating a positive outlook based on anticipated growth and market conditions [2][5]. Core Insights - The company is expected to benefit from the structural upgrade in demand for ternary materials, driven by the rise of eVOTL, humanoid robots, and wearable AI devices, alongside the industrialization of solid-state batteries. The company's output of nickel-cobalt precursors reached over 120,000 tons in the first three quarters of 2025, with cathode materials shipped exceeding 17,000 tons [2][3]. - The company has demonstrated resilience amid tightening supply, with an increase in self-supply of nickel and cobalt. In the first three quarters of 2025, the company shipped 79,916 tons of nickel metal from its Indonesian project, marking a 151% year-on-year increase, and produced 6,534 tons of cobalt metal, effectively mitigating the impact of export bans [3]. - The recycling of power batteries is projected to enter a large-scale scrapping phase in 2026, with significant market potential for lithium, nickel, and cobalt resources. The company recycled 36,643 tons of power batteries in the first three quarters of 2025, a 59% increase year-on-year [4]. Financial Projections - Revenue forecasts for the company are projected at 39.27 billion yuan for 2025, 48.18 billion yuan for 2026, and 59.51 billion yuan for 2027. The expected earnings per share (EPS) are 0.32 yuan, 0.45 yuan, and 0.69 yuan for the respective years, with corresponding price-to-earnings (PE) ratios of 30, 21, and 14 times [5][9].