Core Viewpoint - The company reported strong financial performance in Q1 2025, with significant revenue and net profit growth, driven by the production ramp-up of its new integrated anode material project [1][2]. Financial Performance - In Q1 2025, the company achieved revenue of 1.628 billion yuan, representing a year-on-year increase of 89% and a quarter-on-quarter increase of 1.14% [1]. - The net profit attributable to shareholders was 239 million yuan, showing a year-on-year increase of 60.87% but a quarter-on-quarter decrease of 8.16% [1]. - The non-recurring net profit was 247 million yuan, with a year-on-year increase of 72.6% and a quarter-on-quarter increase of 4.17% [1]. Sales and Production - The estimated sales volume for Q1 2025 was between 69,000 to 70,000 tons, with a slight quarter-on-quarter increase attributed to the new production project [2]. - The average selling price for anode products was estimated at 23,000 to 24,000 yuan per ton, remaining stable compared to the previous quarter [2]. - The net profit per ton was stable at approximately 3,300 to 3,700 yuan [2]. Cost and Pricing Impact - The increase in petroleum coke prices is expected to impact profitability in Q2 2025, with a projected cost increase of approximately 1,176 yuan per ton due to higher prices [3]. - As of April 27, 2024, petroleum coke prices had decreased to 4,500 yuan per ton, down 23% from late February [3]. Capacity Expansion and Incentives - The company plans to construct a 200,000-ton integrated anode material project in Shanxi and a 50,000-ton project in Malaysia, both expected to start construction in Q3 2025 and reach production by 2026 [4]. - By 2027, the effective production capacity for artificial graphite anode materials is projected to exceed 500,000 tons [4]. - A stock incentive plan was announced in August 2024, with performance targets set for annual net profit or sales volume growth of no less than 25% from 2024 to 2026, reflecting confidence in future growth [4]. Investment Rating - The company maintains a "buy" rating, with projected net profits of 1.016 billion, 1.324 billion, and 1.500 billion yuan for 2025 to 2027, respectively [5]. - The target price for 2025 is set at 62.24 yuan, based on a reasonable PE ratio of 16 times [5].