Core Insights - The company achieved total revenue of 1.54 billion in the first half of 2025, representing a year-on-year growth of 68.8%, and a net profit attributable to shareholders of 140 million, up 37.3% year-on-year [1] - In Q2 2025, total revenue reached 914 million, reflecting a year-on-year increase of 68.1%, with a net profit of 90 million, marking a 49.8% year-on-year growth [1] Battery Box Business - The battery box business is the core growth driver, benefiting from industry prosperity, technological barriers, and high-quality clients, leading to significant revenue growth [1] - The increasing penetration rate of new energy vehicles drives demand for battery boxes, with a "one vehicle, one configuration" characteristic enhancing the value per vehicle [1] - The company has developed key technologies such as high-performance aluminum alloy research, digital extrusion, and FSW welding, allowing for adaptability across multiple product generations and applications [1] - The client base has expanded from early partnerships with BYD to include CATL, Yutong, and XCMG, enhancing revenue resilience [1] Cell Shell Business - The cell shell business is expected to achieve structural growth driven by innovation and collaboration with the main business [2] - The demand for cell shells is increasing due to the promotion of integrated technologies like CTP/CTB, which enhance safety and consistency [2] - The company leverages its material and process advantages from the battery box business to offer customized high-performance products, creating a technological barrier [2] Precision Structural Components Business - The precision structural components business is crucial for opening a second growth curve through diverse applications and new business breakthroughs [3] - The company has expanded into the 3C consumer electronics sector through the acquisition of Honglian Electronics, serving major clients like Dell and Lenovo [3] - The focus on high-strength materials in the robotics sector and collaboration with leading global clients positions the company for long-term growth [3] Valuation and Investment Recommendation - The average PE ratio for comparable automotive parts companies in 2025 is projected at 28 times [3] - Given the company's strong development capabilities in precision structural components and potential expansion into new markets, a premium PE of 35 times is suggested, forecasting an EPS of 2.01 for 2025 and a target price of 70.35 [3]

Core Viewpoint - The acquisition of 51% stake in Shanghai Zijiang New Materials Technology Co., Ltd. by *ST Weir is seen as a strategic move to enter the lithium battery materials industry, potentially providing new growth momentum for the company's future performance [2][5]. Group 1: Transaction Details - *ST Weir plans to acquire the stake for a total price of 546 million yuan [2]. - The transaction involves multiple parties, including Zijiang Enterprises and Ningde New Energy, with Zijiang Enterprises retaining a 31.05% stake post-transaction [5]. - This transaction is characterized as a related party transaction, as both *ST Weir and Zijiang Enterprises share the same actual controller, Shen Wen [5]. Group 2: Business Overview of Zijiang New Materials - Zijiang New Materials specializes in the research, production, and sales of aluminum-plastic films for soft-pack lithium batteries, holding the title of a national-level "little giant" enterprise [6]. - The company has a significant market presence, with a sales volume of 51.277 million square meters in 2024 and a domestic market share of 22.2% [6]. - Major clients include well-known lithium battery manufacturers such as ATL, BYD, and Xinwangda [6][7]. Group 3: Financial Performance and Projections - Zijiang New Materials reported revenues of 711.3872 million yuan, 623.4211 million yuan, and 155.3505 million yuan for the years 2023, 2024, and the first quarter of 2025, respectively, with net profits of 90.2365 million yuan, 53.5151 million yuan, and 10.1226 million yuan [9]. - A significant decline in net profit of 40.7% is anticipated for 2024 [9]. - The transaction includes performance commitments from the sellers, ensuring net profits of no less than 65.5 million yuan, 78.5 million yuan, and 95.8 million yuan for the years 2025 to 2027 [10]. Group 4: Market Dynamics and Challenges - The soft-pack battery market faces challenges due to the competitive advantages of CTP/CTB technologies and cost disadvantages compared to square and cylindrical batteries, leading to a decline in the market share of soft-pack batteries [10]. - However, innovations in technology are expanding the application scenarios for soft-pack batteries, with companies like BYD utilizing aluminum-plastic films in blade battery packaging [10][11]. - The transition to semi-solid and solid-state battery technologies is expected to create new market opportunities for aluminum-plastic film products [11]. Group 5: IPO Challenges and Future Outlook - Zijiang New Materials has faced multiple setbacks in its IPO attempts, including a withdrawal of its listing application after failing to secure approval for both the Sci-Tech Innovation Board and the Growth Enterprise Market [12]. - The acquisition by *ST Weir raises questions about whether it can provide an alternative route to IPO for Zijiang New Materials, especially given *ST Weir's own financial struggles and history of losses [13].