Core Viewpoint - The announcement from Dike Co., Ltd. indicates that the processing fees for TOPCon silver paste remain stable, while the processing fees for HJT and TBC battery materials are higher than those for TOPCon silver paste. The growth in production capacity for new battery technologies like TBC and HJT, along with innovations in low-silver metallization techniques, is expected to positively impact the company's future profitability [2]. Group 1 - The processing fees for TOPCon silver paste are currently stable [2] - HJT and TBC battery materials have higher processing fees compared to TOPCon silver paste [2] - Future growth in TBC and HJT production capacity, along with advancements in low-silver metallization technologies, is crucial for improving the company's profitability [2]

Investment Rating - The investment rating for the company is "Buy-A" (maintained) [1][6] Core Views - The company has started shipping single-walled carbon nanotubes, leading to a recovery in profitability. The revenue from carbon nanotube conductive paste reached 1.44 billion yuan in 2024, a year-on-year increase of 5.8%, with a gross margin of 35.1% [4][6] - The demand for carbon nanotubes is growing rapidly, with the company maintaining a market share of 53.2% in China for carbon nanotube conductive paste in 2024, an increase of 6.5 percentage points from 2023 [5][6] Financial Performance - In 2024, the company achieved operating revenue of 1.45 billion yuan, a year-on-year growth of 3.1%, and a net profit attributable to shareholders of 250 million yuan, a decrease of 15.8% [3][9] - For Q1 2025, the company reported operating revenue of 330 million yuan, a year-on-year increase of 9.0%, and a net profit of 60 million yuan, up 8.1% [3][9] - The estimated revenue for 2025 is projected to be 2.03 billion yuan, reflecting a year-on-year growth of 40.3% [9] Market Outlook - The compound annual growth rate (CAGR) for carbon nanotube conductive agents is expected to be 26.7% from 2024 to 2030, driven by advancements in fast-charging technologies and new battery technologies [5][6] - The company is expected to ship 90,000 to 100,000 tons of multi-walled carbon nanotube paste and over 10,000 tons of single-walled and mixed paste in 2025, indicating a positive outlook for profitability [4][6]

Core Viewpoint - The lithium battery separator market is experiencing a recovery characterized by simultaneous increases in both volume and price, particularly in the dry separator segment, with prices expected to rise over 20% by 2025, indicating a potential end to the prolonged industry downturn [1] Group 1: Dry Separator Market - Recent reports indicate that leading companies anticipate a price increase of over 20% for dry separators by 2025, marking a significant shift from the previous trend of declining prices [1] - The price of dry separators fell by more than 10% in 2024, at one point dropping below the cost line due to oversupply and intense price competition, which led to reduced production willingness among manufacturers [1] - Long-term price wars have resulted in severe cost and profit imbalances for separator manufacturers, necessitating price increases to gradually restore profit margins [1] Group 2: Technological Developments and Demand - The rapid development of new battery technologies, such as BYD's second-generation blade battery and advancements in solid-state electrolyte membranes, has created new demand for dry separators, which are essential as a "supporting framework" [1] - The demand for high-performance separators is growing in traditional applications, particularly for fast-charging batteries and large-capacity energy storage cells, which require thinner and superior performance separators [2] - Emerging markets, including semi-solid batteries and lithium battery UPS for data centers, are driving demand for separators with high safety requirements, presenting significant market opportunities for aramid-coated separators [2] Group 3: Collaboration and Commercialization - A collaboration between Xingyuan Material and Taihe New Materials has successfully developed aramid-coated separators, which have been applied in the Kirin battery of the Wanjie M9 [3] - The production lines for aramid-coated separators from both companies are expected to be operational by 2025, paving the way for commercialization [3]