Core Insights - Xiamen Hengkang New Materials Technology Co., Ltd. successfully listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board, raising 1.01 billion yuan [1][3] - The company specializes in the research, production, and sales of key materials for integrated circuits, particularly in photolithography materials and precursors, and is one of the few domestic firms capable of developing and mass-producing 12-inch integrated circuit wafer manufacturing materials [3] - The IPO project was completed in less than 11 months, showcasing the efficiency of the underwriting process led by Zhongtai Securities [3][4] Company Overview - Hengkang New Materials is recognized for its innovative capabilities in the advanced process materials sector, establishing a strong technological "moat" [3] - The company has contributed significantly to the domestic integrated circuit industry by addressing critical material challenges through participation in national science and technology projects [3] Underwriting and Market Position - Zhongtai Securities played a crucial role in the IPO process, emphasizing its commitment to client-centered service and its core values [3][4] - Since 2025, Zhongtai Securities has completed two IPO projects on the Sci-Tech Innovation Board, with a total underwriting scale of 1.151 billion yuan, ranking third in the industry for both the number and scale of IPOs [4] - The firm aims to enhance its investment banking capabilities and provide comprehensive financial services to support the high-quality development of the real economy [4]

Report Overview - Report Title: Nonferrous Metals Weekly - Nickel and Stainless Steel [1] - Date: November 18, 2025 [3] - Analyst: Wu Jinheng [4] Investment Ratings - Nickel: Hold a wait - and - see stance, with an expected price range of 110,000 - 125,000 yuan/ton [5][99] - Stainless Steel: Hold short positions, with an expected price range of 11,800 - 12,800 yuan/ton [6][125] Core Views - Nickel: Under macro - level pressure, the supply - demand fundamentals are loose and inventory is rising, so nickel prices are expected to fluctuate weakly [5][99] - Stainless Steel: Weak demand, loose fundamentals, and weakening costs will keep stainless steel prices running weakly [6][125] Summary by Directory 1.1 Nickel Market Review - Last week, SHFE nickel declined by 2.16% weekly, with trading volume dropping to 450,600 lots (- 95,900) and open interest falling to 112,200 lots (- 9,700). LME nickel fell 1.20% weekly, with trading volume rising to 41,100 lots (+ 3,600) [11] - The basis premium was 1,950 yuan/ton [13] 1.2 Supply Side Nickel Ore - Last week, the prices of 0.9%, 1.5%, and 1.8% nickel ores remained flat, and the shipping price from the Philippines to China was unchanged [21] - In September, the Philippines' nickel ore exports decreased. China's nickel ore imports reached 6.11 million tons, a 3.7% month - on - month decrease and a 33.9% year - on - year increase [26] - Last week, the nickel ore arrival volume decreased by 90,200 tons week - on - week, and port inventory decreased by 50,000 wet tons [28] Nickel Pig Iron - The price of 8 - 12% high - nickel pig iron dropped by 12 yuan/nickel point, while the price of 1.5 - 1.7% nickel pig iron remained flat. The negative premium of nickel pig iron to electrolytic nickel narrowed, and the premium to scrap stainless steel widened [34] - In September, China's nickel pig iron imports were 1.085 million tons, a 24.2% month - on - month increase and a 47.2% year - on - year increase. Imports are expected to decline in October [39] - In November, domestic nickel pig iron production and capacity utilization declined, while those in Indonesia increased. Nickel pig iron inventory accumulated [47][49] Electrolytic Nickel - In November, the production and capacity utilization of refined nickel declined, and the import loss of electrolytic nickel widened [53][57] - In September, electrolytic nickel imports increased and exports decreased [61] 1.3 Demand Side Stainless Steel - In November, stainless steel production decreased, mainly due to the reduction of 200 - series production, while 300 - series production remained basically flat [66][114] - In September, stainless steel exports decreased by 6.6% month - on - month and 8.7% year - on - year, while imports increased by 2.7% month - on - month and 0.4% year - on - year. Exports and imports in October are expected to be similar to those in September [70][117] New Energy - The premium of battery - grade nickel sulfate to pure nickel widened, and the proportion of pure nickel used to produce nickel sulfate was extremely low [75] - In November, the production of ternary precursors decreased by 0.1% month - on - month but increased by 20.4% year - on - year, while the production of ternary materials increased by 1.4% month - on - month and 39.8% year - on - year [79] - In November, the production of nickel sulfate increased by 4.8% month - on - month and 23.4% year - on - year [81] - In October, the production of new energy vehicles was 1.772 million units, a 9.6% month - on - month increase and a 21.1% year - on - year increase; sales were 1.715 million units, a 6.9% month - on - month increase and a 19.9% year - on - year increase [87] 1.4 Inventory Side - Last week, SHFE nickel inventory and LME nickel inventory both increased. Shanghai bonded - area pure nickel inventory remained flat, and the six - region social inventory increased by 3,981 tons [88][93] 1.5 Cost and Outlook - The cost of producing electrowon nickel from externally purchased nickel sulfate, nickel matte, and MHP decreased. MHP - integrated production of electrowon nickel has a significant cost advantage over nickel matte - integrated production [98] - Nickel prices are expected to fluctuate weakly due to macro - level pressure, loose fundamentals, and rising inventory [99] 2.1 Stainless Steel Market Review - Last week, stainless steel futures declined by 1.51% weekly, with the basis widening to 1,080 yuan/ton. Trading volume was 490,300 lots (unchanged), and open interest increased to 167,700 lots (+ 110,600) [102] 2.2 Cost and Profit - The prices of high - nickel pig iron and high - carbon ferrochrome decreased, weakening cost support [105] - The profitability of 200 - series stainless steel improved, the losses of 300 - series widened, and 400 - series turned from loss to profit [110] 2.3 Fundamental Analysis - In November, stainless steel production decreased, mainly due to the reduction of 200 - series production, while 300 - series production remained basically flat [114] - In September, stainless steel exports decreased, and imports increased. Exports and imports in October are expected to be similar to those in September [117] 2.4 Inventory Side - Domestic stainless steel social inventory increased, with inventory of all series (200, 300, and 400) rising [123] 2.5 Outlook - Due to weak demand, loose fundamentals, and weakening costs, stainless steel prices are expected to continue to run weakly [125]

Core Viewpoint - Fangyuan Co., Ltd. experienced a significant stock price increase of 20.02%, reaching 10.79 CNY per share, with a market capitalization of 5.505 billion CNY following the release of its research report [1] Production Capacity - The company has achieved an overall production capacity of 34,000 tons of precursor, 24,000 tons of lithium carbonate, 45,600 tons of nickel-cobalt salt intermediates, and 1,800 tons of ball nickel after technical upgrades [1] - The main equipment in the hydrometallurgical production line consists of general equipment such as extraction tanks and reaction kettles, allowing for flexible adjustments in production capacity based on actual conditions [1] Strategic Partnerships - In September, the company signed a cooperation agreement with a Japanese enterprise, planning to develop and produce a specific precursor in Japan through technology transfer and equity participation [1] - The company will provide technology and processes to the target company and will receive a total service fee of 4.8 billion JPY in batches according to the project implementation stages [1]

Core Viewpoint - The demand for precursors is expected to increase by over 25% due to the expansion of major storage manufacturers, while the domestic production rate remains below 20. The company, Yake Technology, has confirmed collaborations with these storage manufacturers [2]. Group 1 - Major storage manufacturers such as Changxin, Yangtze Memory, Samsung Xi'an, and SK Hynix Wuxi are expanding production [2]. - The growth in precursor demand is projected to exceed 25% as a result of this expansion [2]. - Yake Technology has established partnerships with the aforementioned storage companies [2].

Core Viewpoint - Huayou Cobalt achieved revenue and profit growth in the first three quarters of 2025, indicating strong operational performance and effective business strategies [2] Financial Performance - The company reported a cumulative operating revenue of 58.941 billion yuan, representing a year-on-year increase of 29.57% [2] - The cumulative net profit attributable to shareholders reached 4.216 billion yuan, reflecting a year-on-year growth of 39.59% [2] - In the third quarter alone, the company achieved an operating revenue of 21.744 billion yuan, with a quarter-on-quarter increase of 12.35% [2] - The net profit for the third quarter was 1.505 billion yuan, showing a quarter-on-quarter growth of 3.18% [2] Business Operations - The company's precursor business for cobalt and nickel raw materials is fully self-sufficient [2] - The Pomalaa project in Indonesia is expected to be completed and commence production by the end of next year [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's Q3 performance met expectations, with revenue of 6.467 billion yuan (YoY +29%) and a net profit of 796 million yuan (YoY +6%). The storage industry is entering a high prosperity cycle, and core businesses such as precursors are expected to continue accelerating [6][5] - The demand for storage is anticipated to increase significantly due to the acceleration of AI infrastructure, with a more steep and sustained demand curve expected in the future [6] - The company is positioned to benefit from the growing demand for electronic materials, with significant growth in various product lines, including precursors and silicon powder [6] Financial Data and Profit Forecast - Total revenue is projected to reach 8.816 billion yuan in 2025, with a year-on-year growth rate of 28.5%. The net profit attributable to the parent company is expected to be 1.117 billion yuan, reflecting a growth rate of 28.2% [5][7] - The gross profit margin for Q3 was 32.78%, with a net profit margin of 13.49%. The company has been increasing its R&D investment, with R&D expenses for Q3 amounting to 97 million yuan [6] - The company's return on equity (ROE) is projected to improve from 10.2% in 2025 to 18.8% by 2027 [5]

Core Insights - Fangyuan Co., Ltd. is a leading domestic producer of lithium battery cathode material precursors, specializing in high-end ternary precursor production from recycled batteries [1] Financial Performance - For Q3 2025, Fangyuan's revenue was 1.49 billion yuan, ranking 31st among 44 companies in the industry, with the top company, Zhongwei Co., Ltd., reporting revenue of 33.297 billion yuan [2] - The company's net profit was -121 million yuan, placing it 32nd in the industry, while the leading company, Putailai, reported a net profit of 1.872 billion yuan [2] Profitability and Debt - As of Q3 2025, Fangyuan's debt-to-asset ratio was 84.32%, significantly higher than the industry average of 51.96% [3] - The gross profit margin for Q3 2025 was 3.05%, lower than the industry average of 10.89% [3] Executive Compensation - The chairman and CEO, Luo Aiping, received a salary of 1.29 million yuan in 2024, a decrease of 315,700 yuan from 2023 [4] Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 26.42% to 15,900, while the average number of shares held per shareholder decreased by 20.90% to 32,100 shares [5]

Investment Rating - The investment rating for the company is upgraded to "Buy" due to steady performance growth and significant benefits from rising cobalt prices [5][7]. Core Insights - The company reported a revenue of 58.941 billion yuan for Q1-Q3 2025, a year-on-year increase of 29.57%, and a net profit attributable to shareholders of 4.216 billion yuan, up 39.59% year-on-year [7]. - Cobalt prices have surged significantly, rising from 170,000 yuan/ton to 410,000 yuan/ton, a 140% increase, driven by supply constraints from the Democratic Republic of the Congo [7]. - The company is expanding its nickel business, with projects in Indonesia that could lead to substantial profit increases once nickel prices rebound [7]. - A strategic agreement with leading companies in the lithium battery supply chain is expected to enhance the company's long-term profitability [7]. Financial Summary - Revenue projections for 2025 are estimated at 70.439 billion yuan, with a year-on-year growth rate of 15.58% [6]. - The net profit attributable to shareholders is forecasted to reach 6.038 billion yuan in 2025, reflecting a growth rate of 45.33% [6]. - The company's earnings per share (EPS) is expected to be 3.18 yuan in 2025, with a price-to-earnings (P/E) ratio of 19.41 [6].

Core Viewpoint - The company, Chao Ping San, has a complete industrial chain advantage in the lithium-ion battery materials business, encompassing the recycling of used lithium-ion battery materials to the production of precursors, lithium carbonate, and cathode materials [2] Summary by Categories - **Business Model** - The company’s lithium-ion battery materials business includes a comprehensive process from recycling used materials to producing precursors and lithium carbonate, as well as various cathode materials [2] - **Product Range** - Main products include lithium carbonate and cathode materials such as ternary materials, lithium cobalt oxide, and lithium manganese oxide [2]

Core Viewpoint - Ningbo Ronbay New Energy Technology Co., Ltd. is currently in a transitional phase with gradual release of new materials and products, expecting a performance turning point in Q3 2025 [1] Group 1: Business Development - The company is engaging in investor communications to discuss business development, capacity layout, and future outlook with 100 institutional investors [1] - Ronbay Technology is focusing on capital cooperation with upstream enterprises to create a competitive advantage in supply chain costs [1] Group 2: Capacity Expansion - The company has established 60,000 tons/year of ternary cathode capacity and 6,000 tons/year of precursor capacity in Chungju, South Korea, currently in the ramp-up phase [2] - In Poland, a 25,000 tons/year ternary cathode capacity is under construction, with major equipment already on-site, expected to be operational in H1 2026, focusing on high-nickel and medium-nickel ternary products [2] Group 3: Market Outlook - The company anticipates that the profit level of new products will not be lower than that of existing products, and is optimistic about the outlook for Q4 and next year due to overseas market expansion [1]