Summary of Wuxi Lead Intelligent Conference Call Company Overview - **Company**: Wuxi Lead Intelligent (300450.SZ) - **Industry**: China Industrials - **Market Cap**: Rmb 98,277 million - **Stock Rating**: Overweight - **Price Target**: Rmb 75.00, representing a 20% upside from the closing price of Rmb 62.75 on October 29, 2025 Key Financial Highlights - **3Q25 Revenue**: Rmb 3,828 million, up 14% YoY and 9% QoQ, but below consensus expectations [7] - **Gross Profit Margin (GPM)**: Decreased by 6 percentage points YoY to 30.9%, impacted by low-GPM domestic orders [7] - **Net Profit**: Increased by 199% YoY to Rmb 446 million, slightly below consensus [7] - **New Orders**: 9M25 new orders reached Rmb 17.5 billion, primarily driven by domestic lithium-ion battery (LiB) orders, which accounted for approximately 50% of the mix [2] Growth Outlook - **Management Confidence**: Management is optimistic about improving sales and GPM into 4Q25 and 2026, projecting over 30% annual growth in new orders by 2030 [3] - **Energy Storage Systems (ESS)**: Expected to see accelerated growth, with a mix projected to exceed 50% in fiscal year 2025 [2] - **Solid-State Battery Orders**: Increased quarter-over-quarter, mainly from domestic orders for front-end equipment [2] Financial Projections - **Revenue Forecast**: Expected to grow from Rmb 14,631 million in 2025 to Rmb 28,711 million by 2027 [5] - **Earnings Per Share (EPS)**: Projected to increase from Rmb 0.97 in 2025 to Rmb 2.09 in 2027 [5] - **Valuation Methodology**: Price target derived using a 4x market cap-to-new order multiple based on 2026 new orders of approximately Rmb 29 billion [10] Risks and Considerations - **Upside Risks**: Stronger-than-expected EV sales outlook and faster overseas expansion could enhance growth [12] - **Downside Risks**: Weaker EV sales outlook and limited progress in overseas expansion may pose challenges [12] Additional Insights - **Cost Management**: Improved operational expense control contributed to net profit growth despite lower GPM [7] - **Market Position**: The company is positioned to gain market share during the capital expenditure upcycle in the industry [3] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, growth outlook, and associated risks.