Core Insights - The company demonstrated strong core competitiveness with excellent performance in Q1 2025, indicating potential for sustained growth through new products and capacities [1] Financial Performance - The company expects Q1 2025 revenue to be between 1.6 billion to 1.7 billion yuan, representing a year-on-year growth of 85.8% to 97.4% [2] - The projected net profit attributable to shareholders for Q1 2025 is between 230 million to 260 million yuan, showing a year-on-year increase of 54.7% to 74.8% [2] - The non-recurring net profit is also expected to be between 230 million to 260 million yuan, with a year-on-year growth of 60.7% to 81.6% [2] - On average, the non-recurring net profit for Q1 2025 is projected to grow by 71.3% year-on-year and 3.4% quarter-on-quarter [2] Industry Dynamics - The company’s demand remains strong despite the typical seasonal fluctuations in Q4 and Q1, indicating resilience in the market [3] - The negative electrode materials business has seen significant growth, with a projected shipment volume of 2.08 million tons in China for 2024, marking a 26% year-on-year increase [3] - The company achieved a sales volume of 216,500 tons for negative electrode materials in 2024, reflecting a year-on-year growth of 53.65% [3] Production Capacity and Competitive Edge - The company’s integrated project in Shijiazhuang, with an annual capacity of 100,000 tons for lithium battery negative materials, is set to gradually commence production in Q1 2025, with full order volumes and rapidly increasing capacity utilization [3] - Plans are underway to establish a 50,000-ton lithium battery negative materials project in Malaysia to enhance international competitiveness [3] - The company has achieved cost advantages by conducting all production processes in-house, reducing transportation costs and improving profitability [3] - New product developments include high-rate performance artificial graphite negative materials and three mature silicon-carbon negative material products, with samples already sent to select customers [3]

Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a strong performance in Q1 2025, with expected revenue between 1.6 billion to 1.7 billion yuan, representing a year-on-year growth of 85.78% to 97.39%. The net profit attributable to shareholders is projected to be between 230 million to 260 million yuan, showing a year-on-year increase of 54.65% to 74.82% [1]. - The company has successfully transitioned to an integrated production model for anode materials, achieving a 100% self-supply rate in production processes, which positions it as a leader in the industry [1][2]. - The company is progressing well with its domestic and international projects, including a 100,000-ton lithium-ion battery anode materials project in Shijiazhuang, which began production in December 2024, and plans for a 200,000-ton project in Shanxi and a 50,000-ton project in Malaysia, both expected to start construction in Q3 2025 [2]. Financial Projections - The projected net profit for the company from 2025 to 2027 is expected to be 1.085 billion, 1.402 billion, and 1.787 billion yuan, with year-on-year growth rates of 29.4%, 29.2%, and 27.5% respectively. The current closing price corresponds to a PE ratio of 12, 10, and 7 times for the years 2025 to 2027 [2][7]. - The company's revenue is forecasted to grow from 5.229 billion yuan in 2024 to 12.065 billion yuan in 2027, with growth rates of 19.1%, 40.8%, 30.6%, and 25.5% for the respective years [7][8].