Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 20% against the market benchmark index within the next six months [20]. Core Insights - The company reported a revenue of 2.428 billion yuan for the first half of 2025, a year-on-year increase of 5%, with a net profit attributable to shareholders of 107 million yuan, up 14.38% year-on-year [2]. - The company is actively pursuing significant asset restructuring to enhance its equity stake in Nanfu Battery, which has been successfully completed, increasing its ownership to 93.25% [4]. - The OEM business has shown rapid growth, contributing to the company's competitive advantage in the battery industry, alongside a strong performance in its consumer battery brand matrix [3]. Financial Performance Summary - The gross profit margin for the first half of 2025 was 48.28%, a decrease of 0.93 percentage points year-on-year, while the net profit margin improved to 19.13%, an increase of 0.36 percentage points year-on-year [4]. - The company expects net profits for 2025-2027 to be 234 million, 439 million, and 485 million yuan respectively, reflecting year-on-year growth rates of 39%, 87%, and 11% [5]. - The total share capital increased from 211.12 million shares to 252.12 million shares following the asset restructuring [4]. Market Position and Strategy - The company has solidified its leading position in the domestic alkaline battery market and enhanced its technological advantages in the overseas OEM market through the launch of new battery products [3]. - The company is focusing on expanding its B2B market, with a continuous increase in orders and improved cost control measures [3].

Core Viewpoint - Anhui Anfu Battery Technology Co., Ltd. (Anfu Technology) is actively expanding its alkaline battery business overseas and has achieved significant results in the first half of 2025, with total revenue of 2.428 billion yuan, a year-on-year increase of 4.98%, and a net profit of 107 million yuan, up 14.38% year-on-year [2]. Group 1: Business Strategy and Growth - Anfu Technology's management emphasizes the importance of maximizing the value of its core asset, Nanfu Battery, which has been the focus since acquiring control in 2022 [3]. - The company aims to enhance its equity stake in Nanfu Battery through mergers and acquisitions, targeting high-growth potential companies within the industry [2][5]. - The domestic market for Nanfu Battery shows strong growth potential, with a retail market share exceeding 80% and a significant gap in alkaline battery penetration compared to developed countries [3][4]. Group 2: International Expansion - Nanfu Battery currently holds the third-largest global market share in alkaline batteries, but its export share is only about 8% [4]. - Anfu Technology plans to increase production capacity with four new fully automated production lines, expected to add 1 billion units of capacity, supporting future growth in the OEM export market [4]. - The company is also exploring overseas factory setups, partnerships, and acquisitions to accelerate its global expansion [4]. Group 3: Product Diversification - Anfu Technology is diversifying its product offerings beyond alkaline batteries, with sub-brands achieving rapid revenue growth in their respective segments [5]. - The company is focused on building a comprehensive brand strategy that includes "Smart Manufacturing Nanfu," "Technology Nanfu," and "World Nanfu" to enhance its market presence [5]. Group 4: Mergers and Acquisitions - Anfu Technology's recent acquisition of a 31% stake in Anfu Energy has been approved, increasing its equity stake in Nanfu Battery from 26.09% to 42.92% [5]. - The successful completion of this major asset restructuring is expected to significantly improve the company's future operating performance [5][6]. - The company's strong integration capabilities and past successful mergers provide a solid foundation for future growth and value creation [6][8].