Core Viewpoint - The report on Enjie Co., Ltd. indicates that while the company faces cyclical industry pressures, the expected ramp-up of solid-state products presents potential growth opportunities [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 5.76 billion yuan, a year-on-year increase of 20.5%, but reported a net loss of 90 million yuan, marking a shift from profit to loss [2]. - The gross margin was 15.5%, down 5.49 percentage points year-on-year, and the net margin was -1.6%, down 7.7 percentage points year-on-year [2]. - In Q2 2025, revenue was 3.03 billion yuan, with a year-on-year increase of 23.6% and a quarter-on-quarter increase of 11.2%, but the net loss was 120 million yuan [2]. - The company’s production capacity utilization rate has been steadily increasing, contributing to a significant rise in shipment volumes, although pricing pressures have negatively impacted revenue growth [2][3]. Market Dynamics - The price of wet-process 7um products decreased by 25% year-on-year to 0.74 yuan per square meter in H1 2025, with specific product prices also declining [2]. - A consensus has been reached in the lithium battery separator industry regarding price discipline and a halt on capacity expansion, which is expected to stabilize prices in the second half of the year [2]. Product Development - The company’s subsidiary, Hunan Enjie, has accelerated the launch of solid-state products, with significant production milestones achieved in 2025 [3]. - Enjie has established a strong product portfolio including lithium sulfide, electrolytes, and electrolyte membranes, with performance metrics that lead the industry [3]. Investment Outlook - The company is positioned as a leading player in the global separator market, with strategies to enhance market share through increased capacity utilization and cost reduction [3]. - Revenue projections for 2025, 2026, and 2027 are 11.5 billion yuan, 13.5 billion yuan, and 16.1 billion yuan respectively, with net profits expected to be 8 million yuan, 500 million yuan, and 830 million yuan respectively [3].

Core Insights - The company reported a revenue of 5.76 billion yuan for the first half of 2025, representing a year-on-year increase of 20.5%, but incurred a net loss of 90 million yuan, marking a shift from profit to loss [1] - In Q2 2025, the company achieved a revenue of 3.03 billion yuan, with year-on-year and quarter-on-quarter growth of 23.6% and 11.2% respectively, but also reported a net loss of 120 million yuan [1] - The company's gross margin decreased to 15.5%, down 5.49 percentage points year-on-year, while the net margin fell to -1.6%, a decline of 7.7 percentage points year-on-year [1] Revenue and Profitability - The company's revenue growth was driven by increased shipment volumes, but pricing pressures led to a weaker revenue growth rate compared to shipment growth [1] - The average price of the company's products, specifically the 7um film, decreased by 25% year-on-year to 0.74 yuan per square meter in H1 2025, impacting revenue growth [1] - The company plans to stabilize prices and has reached key agreements in the lithium battery separator industry to pause capacity expansion and implement price discipline [1] Future Outlook - The company is expected to maintain high revenue growth in the second half of 2025, supported by increasing production capacity in Hungary and stabilization of product prices [1] - The company’s subsidiary, Hunan Enjie, has begun production of lithium sulfide and signed a significant investment agreement for solid-state electrolytes, indicating potential for future growth [2] - The company is positioned as a leading player in the separator industry, with strategic initiatives to enhance capacity utilization and cost efficiency, while also expanding into international markets [2] Financial Projections - Revenue projections for the company are estimated at 11.5 billion yuan, 13.5 billion yuan, and 16.1 billion yuan for the years 2025, 2026, and 2027 respectively [2] - Expected net profits for the same years are projected to be 8 million yuan, 500 million yuan, and 830 million yuan, with earnings per share of 0.01, 0.52, and 0.86 yuan [2]

Investment Rating - The report maintains a "Buy" rating for the companies Jinbo Co., Ltd. and Xiamen Tungsten Co., Ltd. [8][10] Core Viewpoints - The solid-state battery sector is experiencing a surge in activity, with multiple companies set to launch new products, indicating a strong focus on solid-state battery technology [2][4] - The report emphasizes the importance of electrolyte technology routes and lithium metal in the solid-state battery discussions, with sulfide halides being a focal point [2][3] - The solid-state battery industry is expected to see significant advancements, with semi-solid batteries anticipated for mass delivery by 2025 and full solid-state battery solutions accelerating in development [4] Summary by Sections Industry Overview - The CIBF 2025 conference will feature solid-state batteries prominently, with a full-day forum dedicated to the topic, highlighting its significance in the industry [1] - The report notes that the second quarter of the year is particularly active for industry events, with several product launches related to solid-state batteries expected [2] Technology and Innovation - The report identifies key areas of focus within the solid-state battery technology, including silicon-based anodes, electrolyte membranes, and composite foils, which are expected to benefit from industry growth [3] - The report suggests that polymer solid-state batteries are more industry-friendly and have a higher maturity level, indicating a potential for rapid commercialization [3] Investment Opportunities - The report continues to recommend the solid-state battery supply chain, including halide/polymer solid-state electrolytes, lithium metal collectors, electrolyte membranes, and silicon-based anodes [4] - Specific companies highlighted for investment include Jinbo Co., Ltd. and Xiamen Tungsten Co., Ltd., with target prices set at 28.20 and 53.72 respectively [8][10]