Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index within the next six months [23]. Core Views - The company has shown significant improvement in its performance, with a notable recovery in the second quarter, achieving a positive net profit [8]. - The company's ABC photovoltaic components have gained market recognition, leading to increased sales and improved gross margins [8]. - The company is expanding its sales in overseas high-value markets, with a strong performance in Europe and significant growth in shipment volumes [8]. - The report highlights the company's technological advantages in the BC battery sector, supported by a robust patent portfolio [8][9]. - The overall photovoltaic industry is expected to undergo a phase of capacity elimination, which will improve the supply-demand dynamics and benefit leading companies like the one under review [10]. Financial Summary - For the first half of 2025, the company reported total revenue of 8.446 billion yuan, a year-on-year increase of 63.63%, while the net profit attributable to shareholders was a loss of 238 million yuan, significantly narrowing compared to previous periods [5]. - The company achieved a net cash flow from operating activities of 1.855 billion yuan, indicating a positive turnaround [5]. - The gross margin for the second quarter was 7.4%, with a net profit margin of 1.16%, reflecting substantial quarter-on-quarter improvements [8]. - The forecasted net profits for 2025, 2026, and 2027 are projected to be 258 million yuan, 613 million yuan, and 1.53 billion yuan, respectively [10].

Core Viewpoint - Aixi Co., Ltd. has shown significant improvement in its financial performance in the first half of 2025, with a notable recovery in its second-quarter net profit, driven by strong sales of its ABC photovoltaic components in both domestic and overseas markets [2][3][4]. Financial Performance - In the first half of 2025, the company achieved total operating revenue of 8.446 billion yuan, a year-on-year increase of 63.63% [2]. - The net profit attributable to shareholders was a loss of 238 million yuan, but the loss margin significantly narrowed compared to the previous year [2]. - The net cash flow from operating activities was 1.855 billion yuan, showing a clear turnaround [2]. - The basic earnings per share were -0.13 yuan [2]. Sales and Market Expansion - The company’s ABC photovoltaic components have entered a ramp-up phase, with shipments reaching 8.57 GW in the first half of 2025, a year-on-year increase of over four times [4]. - The sales gross margin for the second quarter was 7.4%, and the net profit margin was 1.16%, with quarter-on-quarter increases of 6.87 and 8.73 percentage points, respectively [3]. - The company has successfully expanded its sales in high-value overseas markets, achieving a price premium of 10%-50% for its ABC components compared to traditional TOPCon components [4]. Technological Advancements - The company holds complete proprietary intellectual property rights for its ABC technology and has made significant advancements in the BC battery field [5]. - As of mid-2025, the company has obtained 37 ABC patent authorizations, including 104 authorized invention patents [5]. - The third-generation "full-screen" components have achieved a conversion efficiency of over 25% [4]. Industry Outlook - The photovoltaic industry is expected to undergo a "de-involution" process, which will lead to the elimination of backward production capacity and improvement in the supply-demand balance [5]. - The central government has proposed measures to regulate excessive competition and promote capacity governance in key industries, which may positively impact the photovoltaic sector [5]. Investment Recommendations - The company is projected to achieve net profits of 258 million yuan, 613 million yuan, and 1.53 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding fully diluted EPS of 0.14 yuan, 0.34 yuan, and 0.84 yuan [6]. - The current stock price of 14.40 yuan per share corresponds to PE ratios of 101.88, 42.88, and 17.18 for the respective years [6]. - Given the company's technological advantages and expansion into overseas markets, it is recommended to maintain an "overweight" investment rating [6].