Core Viewpoint - Ningde Times is expected to achieve over 30% year-on-year growth in net profit for the first half of 2025, with both quarter-on-quarter and year-on-year increases in Q2 net profit, indicating resilient profitability and ongoing growth in R&D investment [1] Financial Performance - In H1 2025, the company's gross margin is 25.02%, a decrease of 1.51 percentage points year-on-year; net profit margin is 18.09%, an increase of 3.17 percentage points year-on-year; return on equity (ROE) is 10.34%, a decrease of 1.31 percentage points year-on-year [1] Product Innovation - The company has continuously launched innovative products in H1 2025, including the second-generation supercharging battery and dual-core battery for passenger vehicles, and a new integrated battery for heavy trucks in the commercial vehicle sector [1] - In the energy storage sector, the company has mass-produced and delivered a 587Ah large-capacity energy storage cell and released the world's first mass-producible ultra-large capacity energy storage system solution, TENERStack [1] Market Position and Growth - As of January to May 2025, the company's global market share for power battery installations reached 38.1%, an increase of 0.6 percentage points year-on-year [1] - The company maintained the highest global production of energy storage batteries from January to June 2025, driven by rapid growth in the new energy vehicle market and increasing demand for renewable energy and new data center storage [1] Strategic Development - The company is accelerating the construction of a battery swapping ecosystem since 2025 and plans to start small-scale production of solid-state batteries in 2027 [1] - The company is recognized as a global leader in lithium batteries, continuously launching innovative products and steadily increasing market share while maintaining robust profitability [1]

Core Viewpoint - Ningde Times is expected to achieve over 30% year-on-year growth in net profit for the first half of 2025, with both quarter-on-quarter and year-on-year increases in Q2 net profit, indicating resilient profitability and ongoing growth in R&D investment [1] Financial Performance - In H1 2025, the company's gross margin was 25.02%, a decrease of 1.51 percentage points year-on-year; net profit margin was 18.09%, an increase of 3.17 percentage points year-on-year; return on equity (ROE) was 10.34%, a decrease of 1.31 percentage points year-on-year [1] Product Innovation - The company has continuously launched innovative products in H1 2025, including the second-generation supercharging battery and dual-core battery for passenger vehicles, and a new integrated battery for heavy trucks in commercial vehicles [1] - In the energy storage sector, the company delivered 587Ah large-capacity energy storage cells and released the world's first mass-producible ultra-large capacity energy storage system solution, TENERStack [1] Market Position and Growth - As of January to May 2025, the company's global market share for power battery installations reached 38.1%, an increase of 0.6 percentage points year-on-year [1] - The company maintained the highest global production of energy storage batteries from January to June 2025 [1] - The rapid growth of the new energy vehicle market and the increasing demand for renewable energy and new data center storage are driving the energy storage market's growth, with a high certainty of lithium battery demand increase [1] Strategic Development - The company is accelerating the construction of a battery swapping ecosystem since 2025 and plans to start small-scale production of solid-state batteries in 2027 [1] - The continuous technological and product innovation is solidifying the company's market position, maintaining a "buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Insights - The company achieved a revenue of 178.886 billion yuan in H1 2025, representing a year-on-year growth of 7.27%, with a net profit of 30.485 billion yuan, up 33.33% year-on-year [5] - In Q2 2025, the company reported a revenue of 94.182 billion yuan, a year-on-year increase of 8.26% and a quarter-on-quarter increase of 11.19%, with a net profit of 16.523 billion yuan, up 33.73% year-on-year and 18.33% quarter-on-quarter [5] - The company continues to innovate with new products, maintaining a competitive edge and steadily increasing its global market share [5][8] Financial Performance - The company's operating cash flow net amount reached 58.687 billion yuan in H1 2025, a year-on-year increase of 31.26% [5] - As of the end of Q2 2025, the company's cash reserves amounted to 350.578 billion yuan, up 37.48% year-on-year [5] - The gross profit margin for H1 2025 was 25.02%, a decrease of 1.51 percentage points year-on-year, while the net profit margin was 18.09%, an increase of 3.17 percentage points year-on-year [5] Market Position and Growth - The company has a global market share of 38.1% in the power battery installation volume from January to May 2025, an increase of 0.6 percentage points year-on-year [5] - The company is the global leader in lithium batteries, with a strong focus on technology and product innovation, which supports its market position [8] - The company plans to accelerate the construction of battery swapping ecosystems and is expected to start small-scale production of solid-state batteries in 2027 [5]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [9][10]. Core Insights - The company, Ningde Times (300750), reported a significant increase in net profit for H1 2025, with a year-on-year growth exceeding 30%. The Q2 results also showed both year-on-year and quarter-on-quarter increases in net profit [6][9]. - The company continues to innovate and maintain a competitive edge in the market, with a steady increase in global market share for its products, particularly in the electric vehicle and energy storage sectors [6][9]. Financial Performance Summary - For H1 2025, the company achieved a revenue of 178.886 billion yuan, a year-on-year increase of 7.27%. The net profit attributable to shareholders was 30.485 billion yuan, reflecting a growth of 33.33% [6]. - In Q2 2025, the company reported a revenue of 94.182 billion yuan, up 8.26% year-on-year and 11.19% quarter-on-quarter. The net profit for Q2 was 16.523 billion yuan, marking a 33.73% increase year-on-year and an 18.33% increase quarter-on-quarter [6]. - The company's operating cash flow for H1 2025 was 58.687 billion yuan, a 31.26% increase compared to the previous year, and cash reserves reached 350.578 billion yuan, up 37.48% year-on-year [6]. Market Position and Product Innovation - The company has launched several innovative products in the first half of 2025, including advanced batteries for passenger and commercial vehicles, as well as large-capacity energy storage solutions [6]. - The company’s global market share for power battery installations reached 38.1% in the first five months of 2025, an increase of 0.6 percentage points year-on-year [6]. Capacity and Capital Expenditure - The company’s production capacity for H1 2025 was 345 GWh, with a utilization rate of 89.86%. Capital expenditures for the same period were 20.213 billion yuan, a 46.15% increase year-on-year [6]. - The company is actively expanding its production capacity both domestically and internationally, with ongoing projects in various locations including Germany and Hungary [6]. Earnings Forecast - The earnings forecast for the company indicates a projected net profit of 65.513 billion yuan for 2025, with expected earnings per share (EPS) of 14.37 yuan, corresponding to a price-to-earnings (PE) ratio of 19 times [8][9].