Investment Rating - The report maintains an "Add" rating for the company [1] Core Insights - The company achieved profitability in the first half of 2025, with a net profit of 0.33 billion yuan, marking a significant recovery from previous losses [7] - The company's revenue for the first half of 2025 was 1.529 billion yuan, a year-on-year decrease of 17.5%, primarily due to a strategic reduction in low-margin orders [7] - The gross margin improved to 29.2%, up 2.6 percentage points year-on-year, indicating enhanced profitability [7] - The company has successfully developed a complete line of solid-state battery equipment and has begun deliveries to major clients [7] - The company is focusing on the photovoltaic equipment sector, particularly in the upstream processes, and is advancing research in perovskite technology [7] Financial Summary - Revenue projections for the company are as follows: 2,482 million yuan in 2024, 3,244 million yuan in 2025, 3,866 million yuan in 2026, and 4,437 million yuan in 2027 [1][8] - The net profit forecast for the company is adjusted to 0.74 billion yuan for 2025, 1.4 billion yuan for 2026, and 1.8 billion yuan for 2027 [7] - The earnings per share (EPS) is projected to be -6.19 yuan in 2024, 0.44 yuan in 2025, 0.86 yuan in 2026, and 1.09 yuan in 2027 [8] - The company's price-to-earnings (P/E) ratio is expected to be 132.03 for 2025, 67.16 for 2026, and 53.03 for 2027 [1][8]

Core Viewpoint - The company has shown signs of performance improvement, with a positive operating cash flow and a strategic shift towards higher-margin projects, indicating a potential turning point in its financial performance [1][2][4]. Financial Performance - For the first half of 2025, the company reported operating revenue of 1.529 billion yuan, a decrease compared to the same period last year, attributed to a strategic decision to reduce low-margin customer orders [1]. - In Q2 2025, the company achieved revenue of 814 million yuan, a 13.93% increase from Q1, marking two consecutive quarters of growth [1]. - The net profit attributable to the parent company for Q2 2025 reached 20.59 million yuan, a 60.62% increase from Q1, continuing the growth trend since turning profitable in Q1 2025 [1]. Cash Flow Management - The company reported a net operating cash flow of 224 million yuan, a significant improvement from a negative position in the previous year, supported by effective cost control and revenue management [2]. - Enhanced communication with clients has improved the collection of long-term receivables, while strict control over capital expenditures and supplier payment terms has reduced cash outflows [2]. Technological Advancements - The company has established a strong position in the solid-state battery equipment sector, having developed key manufacturing processes and products, including equipment for solid-state battery assembly lines [2]. - The company is actively collaborating with over 20 clients on solid-state battery technology, indicating a robust pipeline for future orders [2]. Business Expansion - The company has seen significant growth in its smart warehousing and mobile robotics business, with orders reaching 652 million yuan, nearly a tenfold increase from the previous year [3]. - The company is expanding its international presence, signing a global strategic cooperation agreement with a leading Polish commercial vehicle battery manufacturer and securing orders in the Czech Republic [3]. Industry Outlook - The lithium battery industry is experiencing growth, with emerging sectors like solid-state batteries gaining momentum, positioning the company for continued success [4]. - The company is expected to benefit from ongoing cost control measures and the gradual realization of new orders, particularly as the lithium battery expansion cycle resumes [4].