Investment Rating - The report maintains a "Recommendation" rating for the solar industry, expecting the industry index to outperform the benchmark index by more than 5% in the next 3-6 months [5][61]. Core Insights - The solar industry is experiencing a slowdown in price increases across the supply chain, with component prices currently in a negotiation phase [12]. - The report highlights that the prices of key materials such as polysilicon and silicon wafers have remained stable, while the demand for solar cells is showing signs of differentiation based on size [12][39]. - The overall market sentiment is improving due to supply-side reforms and the implementation of energy-saving measures, which are expected to benefit certain segments of the industry [12][9]. Summary by Sections 1. Price Trends in the Solar Industry - Polysilicon prices are stable, with N-type re-investment material averaging 47,200 RMB/ton, up 0.21% week-on-week, while N-type granular silicon remains unchanged at 44,300 RMB/ton [12][39]. - Silicon wafer prices are also stable, with various sizes holding steady, indicating a cautious market outlook [12][40]. - The prices of solar cells are showing a divergence based on size, with larger cells seeing price increases due to overseas demand [12][39]. - Component prices are in a negotiation phase, with upstream costs rising but limited acceptance from downstream companies due to profitability concerns [12][39]. 2. Market Performance Review - The report notes a 4.32% increase in the comprehensive index and a 1.94% increase in the electric power equipment industry index for the week [13][14]. - The top-performing stocks in the electric power equipment sector include Huaguang Huaneng (+46.75%) and Jinlihua Electric (+45.33%) [16][18]. 3. Industry Valuation Metrics - As of August 8, the industry PE (TTM) for electric power equipment stands at 26x, with a valuation percentile of 27.9% [25][30]. - The solar equipment sector has a PE (TTM) of 19x, with a valuation percentile of 19.7%, indicating a relatively lower valuation compared to other sectors [26][35].

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company is expected to achieve revenue of 13.3 billion RMB in 2024, a year-on-year decline of 23.19%, with a net profit attributable to shareholders of 494 million RMB, down 6.33% year-on-year [1] - The company has a differentiated competitive advantage, with expected sales growth of ternary materials and cobalt acid lithium higher than the industry average [1][3] - New technologies such as NL new structure and solid-state battery materials are anticipated to contribute to future growth [4] Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 34.14 billion RMB, a year-on-year decline of 18.48%, while net profit attributable to shareholders was 1.27 billion RMB, up 10.01% year-on-year [2] - For Q1 2025, revenue is projected at 29.77 billion RMB, a decrease of 9.77% quarter-on-quarter, with net profit of 1.17 billion RMB, reflecting a year-on-year increase of 4.84% [2] Market Position - In 2024, the company sold 46,200 tons of cobalt acid lithium, a year-on-year increase of 33.52%, significantly outperforming the market growth rate of 18.8% [3] - Ternary material sales reached 52,400 tons, up 40.03% year-on-year, while the industry average growth was only 3.6% [3] Technology and Innovation - The company has developed NL new structure cathode materials that significantly outperform traditional cobalt acid lithium and ternary materials in energy density and charge-discharge rates [4] - The company is also advancing in solid-state battery technology, achieving ton-level production of solid electrolytes and stable product performance [4] Profitability Forecast - The company has revised down its shipment and profitability assumptions for phosphate lithium materials for 2025-2026, but expects improvements in 2027 due to scale effects [5] - Projected net profits for 2025, 2026, and 2027 are 666.88 million RMB, 809.48 million RMB, and 953.81 million RMB respectively [5]