LEAD INTELLIGENT(SZ:300450)2026-01-27 03:13Investment Rating - The report maintains a "Buy" rating for Wuxi Lead Intelligent Equipment with a target price of Rmb75.0, indicating an expected share price return of 18.8% and a total return of 19.2% [5][16]. Core Insights - Wuxi Lead's preliminary results for 2025 suggest a significant net profit increase of 424%-529% YoY, projected to be between Rmb1.50 billion and Rmb1.80 billion, with a midpoint of Rmb1.65 billion, which is 5% and 2% above CitiE and Bloomberg consensus estimates [1][2]. - The strong earnings growth is attributed to a recovery in global EV battery demand and increased demand for energy storage systems (ESS), leading to improved order delivery times [1]. - The company has reported improvements in gross profit margin (GPM) both QoQ and YoY in 4Q25, with an estimated GPM of 35.7%, reflecting a 4.8 percentage point increase QoQ and a 5.6 percentage point increase YoY [2]. - Wuxi Lead is enhancing its R&D efforts to boost competitiveness in new product areas, including solid-state batteries, sodium-ion batteries, and advanced solar cell technologies [1]. Earnings Summary - For the year ending December 31, 2023, Wuxi Lead reported a net profit of Rmb1,775 million, with a diluted EPS of Rmb1.135, reflecting a decline of 23.4% [3]. - The forecast for 2025 estimates a net profit of Rmb1,566 million, with an EPS growth of 409.5% and a P/E ratio of 63.1 [3]. - Projections for 2026 and 2027 indicate further growth, with net profits expected to reach Rmb2,206 million and Rmb2,988 million, respectively, alongside improving ROE figures [3].