Investment Rating - The report assigns an "Accumulate" investment rating to the company for the first time, predicting a price-to-earnings ratio (PE) of 19.48 and 15.66 for the years 2025 and 2026 respectively based on the closing price of 128.43 yuan on August 19, 2025 [6][11][33] Core Views - The company's performance in the first half of 2025 met expectations, with revenue of 6.645 billion yuan, a year-on-year increase of 22.01%, and a net profit of 769 million yuan, up 18.72% year-on-year. The growth is primarily driven by the increasing orders for precision structural components for power batteries due to industry growth [6][7][11] - The company is actively expanding into the humanoid robot sector, focusing on the development and production of key components such as precision reducers and joint modules, which is expected to create a second growth engine for the company [6][11][30] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 6.645 billion yuan, with a net profit of 769 million yuan, reflecting a year-on-year growth of 22.01% and 18.72% respectively. The operating cash flow decreased by 25.42% to 1.432 billion yuan [6][7][11] - The gross margin for the first half of 2025 was 22.87%, slightly down by 0.19 percentage points year-on-year, while the net profit margin was 11.53% [6][9][11] Market Position and Growth - The company specializes in precision structural components for lithium batteries, with a significant market share in the electric vehicle sector. The sales volume of lithium battery structural components has grown from 1.237 billion units in 2020 to 4.625 billion units in 2024, with a compound annual growth rate of 39.06% [6][7][11] - The global market for new energy vehicles is expected to continue its double-digit growth, with China's power battery market share increasing significantly, indicating a favorable environment for the company's growth [6][7][11] Strategic Initiatives - The company is investing in humanoid robotics, establishing partnerships to develop key components for this emerging market. This strategic move is anticipated to diversify revenue streams and enhance growth potential [6][11][30] - The company has established 16 production bases globally, with plans for further international expansion, including a new project in Hungary aimed at increasing production capacity for precision structural components [6][11][30]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company is a leading player in the precision structural components industry, with a strong focus on lithium battery and automotive structural components, maintaining approximately 95% revenue contribution from lithium battery structural components [2][3]. - The company is expected to achieve revenue of 12.03 billion yuan in 2024, representing a year-on-year growth of 14.4%, and a net profit of 1.47 billion yuan, up 22.5% year-on-year [2]. - The report highlights the company's robust growth potential in the lithium battery structural components market, driven by the increasing demand from the new energy vehicle and energy storage sectors, with a projected annual compound growth rate of 17% for global new energy vehicle sales from 2024 to 2030 [3][33]. Summary by Sections 1. Company Overview - The company has nearly 30 years of experience in the precision structural components industry, focusing on lithium battery and automotive structural components [2][14]. - The company has established a strong business foundation and is actively expanding its production capacity both domestically and internationally, with new production bases in Germany, Sweden, and Hungary [15][21]. 2. Market Growth and Competitive Advantages - The lithium battery structural components market is expected to maintain high growth, supported by the dual drivers of power and energy storage [31][37]. - The company possesses significant competitive advantages, including strong customer customization, distributed production capacity close to core clients, and a commitment to R&D with over 20% of its workforce dedicated to research [3][65]. 3. Robotics Sector Expansion - The company is actively entering the robotics sector through partnerships, establishing joint ventures to develop harmonic reducers and joint modules [4][81]. - The robotics market is anticipated to experience substantial growth, with supportive government policies and increasing demand for humanoid robots [71][77]. 4. Financial Projections and Investment Recommendations - Revenue projections for 2025-2027 are 14.81 billion, 17.81 billion, and 21.42 billion yuan, with corresponding net profits of 1.77 billion, 2.17 billion, and 2.69 billion yuan, indicating strong growth potential [4][5]. - The report emphasizes the company's strong R&D capabilities and business foundation, suggesting that it is well-positioned to expand its market share and explore high-growth opportunities in the robotics sector [4][65].

Economic News - The Ministry of Industry and Information Technology and six other departments have issued guidelines to promote the innovation and development of the brain-computer interface industry, including the development of high-precision surgical robots for implantation [1] - As of the end of July 2025, China's foreign exchange reserves stood at $329.22 billion, a decrease of $25.2 billion from the end of June, reflecting fluctuations in global financial asset prices and exchange rates [1] - In the first seven months of 2025, private enterprises in China saw a year-on-year increase of 7.4% in imports and exports, marking the highest growth rate of the year [1] - The Ministry of Transport aims to complete the construction of 300,000 kilometers of new and renovated rural roads by 2027, enhancing rural transportation services [1] - In July, retail sales of passenger cars in China reached 1.834 million units, a year-on-year increase of 7% [1] - Major commodity import prices, including iron ore and crude oil, have declined in the first seven months of 2025 [1] Company Insights - China Mobile reported a revenue of RMB 543.8 billion for the first half of the year, with a 0.7% year-on-year increase in communication service revenue [5] - Hua Hong Semiconductor's Q2 2025 sales revenue reached $566 million, an 18.3% year-on-year increase, with a projected revenue of $620 million to $640 million for Q3 2025 [5] - Focus Media plans to acquire 100% of New潮传媒 for a total price of RMB 8.3 billion, which will enhance its market share [5] - Weichai Heavy Machinery intends to purchase 100% of Changbo Company for RMB 492 million, integrating it into its financial statements [5] - Shanghai Pudong Development Bank reported a 2.62% year-on-year increase in revenue for the first half of 2025, with a net profit growth of 10.19% [5] Industry Analysis - Tongwei Co., Ltd. is positioned as a leader in the silicon material and battery cell sectors, with a production capacity of over 90,000 tons of high-purity silicon and over 150 GW of solar cells [6][7] - The company has benefited from government policies aimed at reducing excessive competition in the solar industry, leading to increased prices for silicon materials and wafers [6] - The company has achieved a 20.76% year-on-year increase in high-purity silicon sales volume, capturing approximately 30% of the national market share [7] - The company has a comprehensive technology layout covering various solar cell technologies, including TOPCon and HJT, with significant advancements in efficiency [8] - The company forecasts revenues of RMB 909.82 billion, RMB 1,062.57 billion, and RMB 1,168.35 billion for 2025-2027, with a projected net profit growth rate of 18.03% in 2025 [9] Additional Company Insights - Keda Li is a leading global manufacturer of precision structural components for lithium batteries, with a market share of 29% in 2024 [11][12] - The company is expanding its production capacity in response to the growing demand for lithium battery components, with a projected market size of approximately RMB 570 billion by 2025 [11] - Keda Li is also venturing into the humanoid robot sector, collaborating with Taiwanese companies to develop lightweight harmonic reducers [13] - The company anticipates revenue growth of RMB 148.40 billion, RMB 175.65 billion, and RMB 207.75 billion from 2025 to 2027, with a strong recommendation rating [14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company is a leading player in the domestic lithium battery precision structural components sector, achieving steady revenue and profit growth due to its strong technical foundation and scale advantages, solidifying its position as a cyclical leader. The company is proactively expanding into the robotics sector, focusing on harmonic reducers, modules, and dexterous hands to create a second growth curve [4][12][18]. Summary by Sections 1. Leading Position in Lithium Battery Structural Components - The company's structural components business continues to grow steadily, with a CAGR of 57.2% in precision structural component revenue from 2020 to 2024. The company benefits from economies of scale, with stable gross and net profit margins. With the ramp-up of production capacity in Europe and the establishment of factories in Malaysia and the USA, the company enhances its local supply capabilities, reducing logistics costs and strengthening supply chain relationships, which may lead to an increase in global market share [13][27][32]. 2. Robotics Sector Expansion - The company has initiated its robotics sector layout by establishing joint ventures focused on key components like harmonic reducers. The new harmonic reducers utilize lightweight PEEK materials, offering advantages such as high strength, high-temperature resistance (260℃), and wear resistance, significantly improving transmission accuracy and lifespan. This technology can also be applied in aerospace, medical devices, and semiconductor manufacturing, driving product upgrades towards higher value-added segments [14][21][62]. 3. Financial Forecast and Investment Recommendations - The company is expected to achieve revenues of 144.81 billion, 174.62 billion, and 211.69 billion yuan from 2025 to 2027, with year-on-year growth rates of 20%, 21%, and 21% respectively. The net profit attributable to shareholders is projected to be 18.01 billion, 21.50 billion, and 26.51 billion yuan, with growth rates of 22%, 19%, and 23%. The EPS is expected to be 6.58, 7.86, and 9.69 yuan per share, with a 3-year CAGR of 21.68%. The corresponding PE ratios are projected to be 17, 14, and 12 times [20][30][31].

Economic News - The National Development and Reform Commission is soliciting public opinions on the "Guidelines for the Layout and Investment Direction of Government Investment Funds" and the "Management Measures for Strengthening the Guidance and Evaluation of Government Investment Fund Investment Direction," emphasizing the role of government investment funds in supporting strategic initiatives and attracting social capital [1] - In June 2025, the Ministry of Finance issued new bonds totaling 628.1 billion yuan, including 101 billion yuan in general bonds and 527.1 billion yuan in special bonds, with a total of 1,175.3 billion yuan in local government bonds issued [1] - The State Administration for Market Regulation has initiated a pilot program for product carbon footprint labeling, aiming to enhance collaboration among regulatory departments and promote the application of certification results [1] - In July, the Manufacturing Purchasing Managers' Index (PMI) was reported at 49.3%, indicating a slight decline in manufacturing activity, with large enterprises maintaining a PMI above the critical point [1] - Beijing has issued measures to improve the fertility support policy system, including optimizing childcare support policies and establishing a dynamic adjustment mechanism for childcare service prices [1] - The National Health Commission held a meeting to strengthen the prevention and control of the Chikungunya virus, emphasizing the need for effective measures to maintain public health and economic stability [1] - The U.S. has suspended the minimum tax exemption for low-value goods, effective August 29, impacting goods valued at or below $800 [5] - The Federal Reserve has decided to maintain the federal funds rate target range at 4.25% to 4.50%, indicating a cautious approach to future rate changes amid economic uncertainties [5] - The China Council for the Promotion of International Trade reported a 37.8% month-on-month decrease in the global trade friction index in May, reflecting a reduction in trade tensions [5] - Guangdong Province is intensifying efforts to regulate the live e-commerce industry, focusing on protecting consumer rights and enhancing regulatory enforcement [5] Company News - Yonghui Supermarket plans to issue A-shares to no more than 35 specific investors, raising up to 3.992 billion yuan for store upgrades, logistics improvements, and working capital [6] - Hehua Co., Ltd. has suspended trading of its stock due to potential changes in its controlling shareholder, with discussions ongoing [6] - Changjiang Electric Power reported a total revenue of 36.587 billion yuan for the first half of 2025, a year-on-year increase of 5.02%, driven by increased electricity generation [6] - Jinchengzi is planning to acquire a 55% stake in Changchun Samit Optoelectronics through a combination of stock issuance and cash payment, with trading suspended for up to 10 days [6] - CATL's revenue for the first half of the year reached 178.886 billion yuan, a year-on-year increase of 7.27%, with net profit growing by 33.02% [7] Industry Insights - The implementation of the child-rearing subsidy policy is expected to benefit the entire fertility industry chain, particularly in the demand for baby products and children's clothing [8] - The textile manufacturing sector is showing positive performance, with Baolong Oriental expecting a net profit increase of 50.2% to 76.0% in the first half of the year due to strong order volumes [9] - The home furnishing sector is experiencing pressure from declining real estate data, but retail sales remain strong, supported by government subsidies [9] - The toy industry, particularly for brands like Pop Mart, is seeing stable second-hand prices, indicating strong demand and a healthy market environment [10] - The textile and apparel industry has shown growth, with significant increases in various sectors, including beauty and personal care [11]

Summary of Conference Call Notes Company Overview - The company discussed is **克拉利 (Kedali)**, which operates in the lithium battery structural components industry and has a significant presence in the robotics sector, particularly in the development of new types of torque sensors [1][15]. Key Points and Arguments Financial Performance - The company maintains a leading position in profitability within the industry, with a current valuation around **16 times** earnings, indicating a high margin of safety [1]. - Projected earnings for the year are approximately **900 million**, with a target valuation of **25 times** earnings, reflecting strong growth potential [1]. - In **2024**, the company achieved revenues of **12 billion**, with a year-on-year growth of **14%** [3]. - The company expects revenue growth to recover to over **20%** in **2025** [4]. Market Position - The company holds over **50%** market share domestically and around **30%** globally in the lithium battery structural components sector [2]. - The management team has extensive experience, with key figures having over **25 years** in the industry [2]. - The company has a strong customer base, including major battery manufacturers, which provides stability and growth opportunities [11]. Industry Dynamics - The lithium battery structural components account for about **8%** of battery costs, significantly impacting safety and performance [4]. - The market for cylindrical and prismatic batteries is projected to reach approximately **1,200 GWh** by **2025**, indicating substantial demand growth [5]. - The industry is expected to see improved supply-demand dynamics, with reduced pricing pressure compared to **2024** [6]. Competitive Advantages - The company has a competitive edge due to its high automation rates and production efficiency, leading to lower costs compared to second-tier manufacturers [10]. - The company has maintained a gross margin advantage of over **10%** compared to competitors [7][8]. - The company invests heavily in R&D, maintaining a budget of around **50 million** annually, which supports innovation and product development [11]. Robotics Sector - The company is expanding into the robotics market, focusing on lightweight torque sensors that enhance efficiency and performance [16]. - The new products are designed to reduce weight by **66%** and increase torque-to-weight ratios by **71%** [16]. - The company anticipates significant revenue contributions from the robotics segment, projecting revenues of **1 billion** by **2030** [21]. Future Outlook - The company is expanding its overseas production capabilities, with facilities in Hungary, Germany, and Sweden expected to contribute significantly to revenue growth [13][14]. - The overall revenue forecast for **2025** is **14.7 billion**, with a projected net profit of **1.88 billion**, reflecting a **28%** year-on-year growth [22]. - The current valuation presents a high margin of safety, with potential for further growth in both the structural components and robotics sectors [22][23]. Additional Important Insights - The company’s strategic partnerships with leading battery manufacturers enhance its market position and growth prospects [11]. - The competitive landscape is characterized by a steep cost curve, making it difficult for new entrants to compete effectively [9]. - The company’s focus on high-end products and innovative materials positions it well for future growth in both existing and new markets [12][20].

Core Viewpoint - Shenzhen Kedali Industry Co., Ltd. has issued convertible bonds with a total scale of approximately 15.34 billion RMB, aimed at funding precision structural components for new energy vehicle batteries and other projects [4][6]. Group 1: Company Overview - Shenzhen Kedali Industry Co., Ltd. specializes in the research and manufacturing of precision structural components for batteries and automotive parts, having established itself as a leading player in the domestic market over 28 years [6]. - The company has formed long-term strategic partnerships with major domestic and international clients, including CATL, LG, Panasonic, and Tesla [6]. Group 2: Financial Performance - The company's total assets reached approximately 190.51 billion RMB, with total liabilities of about 73.66 billion RMB, resulting in a net asset value of approximately 116.85 billion RMB [7]. - The operating income for the years 2022, 2023, and 2024 was approximately 86.54 billion RMB, 105.11 billion RMB, and 120.30 billion RMB, respectively, indicating a growth rate of 14.44% [11]. - The net profit for the same years was not specified, but the operating cash flow showed a significant increase, reaching approximately 21.48 billion RMB in 2024 [11]. Group 3: Bond Issuance and Management - The convertible bonds, known as "Keli Convertible Bonds," have a term of 6 years, with an issuance scale of 153,437.05 million RMB [4][5]. - The bond's interest rates are set at 0.30% for the first year, 0.50% for the second year, and 1.00% for the third year, with annual interest payments [5]. - The bond's conversion price was adjusted from 152.20 RMB to 150.70 RMB per share, effective from May 24, 2024, due to market conditions [5][6]. Group 4: Use of Proceeds - The net proceeds from the bond issuance will be allocated to projects including the precision structural components for new energy vehicle batteries, with a total of 60 million RMB for the second phase of the project and 21.51 million RMB for working capital [7][8].

Core Viewpoint - The credit rating of Shenzhen Keda Li Industrial Co., Ltd. remains stable at AA, reflecting its leading position in the lithium battery precision structural components industry and strong financial performance despite facing pricing pressures and high customer concentration risks [4][9][10]. Financial Performance - Total assets increased from 172.22 billion in 2022 to 199.53 billion in 2025, while total liabilities rose from 42.61 billion to 50.76 billion during the same period [4][5]. - Operating revenue grew from 86.54 billion in 2022 to 120.30 billion in 2024, with net profit increasing from 9.13 billion to 14.68 billion [4][5]. - The company reported a significant net cash inflow from operating activities, contributing to a strong cash position and low leverage ratios [7][8]. Market Position and Competitive Advantage - The company benefits from a high demand for lithium battery precision structural components driven by the growth of the new energy vehicle market, with a projected revenue increase of 14.44% in 2024 [6][15]. - Keda Li has established stable relationships with leading clients in the battery manufacturing sector, including CATL and Tesla, enhancing customer loyalty [6][20]. - The company maintains a strong R&D capability, with a focus on innovation in safety, reliability, and lightweight materials, holding 522 patents as of 2024 [11][17]. Risks and Challenges - The company faces pricing pressure on its products due to the strong cost-cutting demands from automotive manufacturers and a slowdown in global battery installation growth [8][15]. - High customer concentration remains a risk, with the top client accounting for over 30% of sales, which could impact financial performance if their situation changes [8][20]. - The company is expanding its production capacity significantly, with over 28 billion in investments planned, raising concerns about the ability to fully utilize this capacity amid a competitive market [8][17]. Industry Outlook - The lithium battery precision structural components market is expected to continue growing, supported by government policies and increasing penetration of new energy vehicles [12][15]. - The global battery installation volume is projected to reach 894.4 GWh in 2024, indicating a 27.2% year-on-year growth, although the growth rate is slowing [12][14]. - The industry is characterized by a high concentration of leading manufacturers, with the top ten companies holding a market share of 67.1% [12][14].

Core Viewpoint - Kedali is accelerating its overseas expansion by investing up to €50 million in Hungary for a new precision component project, aiming for an annual output value of approximately €100 million upon completion [1][2]. Group 1: Overseas Expansion - The company is establishing production bases in Germany, Sweden, and Hungary to meet the demands of international clients [1]. - The investment in Hungary is part of Kedali's strategy to enhance production capacity and accelerate overseas business development [2]. - Kedali plans to invest up to $49 million to establish a subsidiary in the U.S. and build a production base for battery components, marking its entry into the American market [3]. Group 2: Financial Performance - Kedali's revenue grew from ¥1.985 billion in 2020 to ¥12.03 billion in 2024, representing a more than fivefold increase over four years [6]. - The net profit increased from ¥179 million to ¥1.472 billion during the same period, showing a growth of over seven times [6]. - In Q1 2025, the company's revenue rose by 20.46% year-on-year to ¥3.022 billion, with net profit increasing by 25.51% to ¥387 million [6]. Group 3: Research and Development - From 2021 to 2024, Kedali invested approximately ¥2.1 billion in R&D, with a steady increase in annual R&D expenses [6]. - As of the end of 2024, the company holds a total of 522 patents, including 37 invention patents [6].

Investment Rating - The report assigns a "Buy" rating for the company with a 12-month target price of Rmb175.00, while the stock price as of June 12, 2025, was Rmb111.13 [4][20]. Core Insights - The company, Keda Li, is focusing on the humanoid robotics sector by collaborating with a humanoid robot industry chain company to establish a joint venture for dexterous hands, which is expected to inject new growth momentum into the company [2][3]. - The company's current product layout in humanoid robotics includes harmonic reducers, joint components, and dexterous hands, indicating a strategic move towards innovation in this emerging field [3]. Financial Summary - The projected revenue growth from Rmb8.65 billion in 2022 to Rmb27.12 billion by 2029, reflecting a compound annual growth rate (CAGR) of approximately 17.5% [6]. - The expected net profit is projected to increase from Rmb901 million in 2022 to Rmb3.47 billion by 2029, indicating strong profitability growth [6]. - The earnings per share (EPS) is forecasted to rise from Rmb3.84 in 2022 to Rmb12.79 by 2029, showcasing significant growth potential [6]. Valuation Metrics - The company is expected to have a price-to-earnings (P/E) ratio of 16.4x in 2025, decreasing to 8.7x by 2029, suggesting an attractive valuation as earnings grow [6]. - The projected return on invested capital (ROIC) is expected to improve from 18.9% in 2025 to 24.6% by 2029, indicating efficient capital utilization [6]. Market Outlook - The forecasted stock price increase of 57.5% and a dividend yield of 2.2% contribute to an overall expected return of 59.7%, significantly above the market return assumption of 6.7% [9].