Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's performance in Q3 exceeded expectations, with both revenue and profit growth driven by increased sales of lithium cobalt oxide [9] - The company is expected to benefit from government subsidies and rising demand in the consumer electronics sector, projecting a significant increase in lithium cobalt oxide shipments [9] - The company is advancing in solid-state battery materials, particularly lithium sulfide, with plans for increased production capacity [9] Financial Summary - Total revenue for 2023 is projected at 17,311 million yuan, with a year-on-year decrease of 39.79% [1] - The net profit attributable to shareholders for 2023 is estimated at 527.45 million yuan, reflecting a year-on-year decline of 52.93% [1] - Earnings per share (EPS) for 2023 is forecasted at 1.05 yuan, with a price-to-earnings (P/E) ratio of 74.02 [1] - The company anticipates a recovery in net profit to 833.28 million yuan by 2025, representing a year-on-year growth of 68.65% [1] - The projected EPS for 2025 is 1.65 yuan, with a P/E ratio of 46.85 [1]

Core Viewpoint - The domestic energy storage installation in August showed a steady recovery, with year-on-year and month-on-month growth of 58% and 63% respectively, indicating a positive trend in the industry [1] Group 1: Energy Storage and Lithium Industry - In the first eight months of the year, cumulative installations increased by 36% year-on-year [1] - The U.S. market experienced a 47% year-on-year increase in grid-connected capacity in August, although it saw a month-on-month decline of 28% due to adjustments in the ITC Act [1] - Lithium battery production in October is expected to grow by 3% to 9% month-on-month, with battery, anode, and electrolyte segments showing year-on-year growth rates exceeding 40% [1] - Prices for lithium carbonate and lithium hydroxide saw a monthly increase of 20%, while prices for battery cells and electrolytes also rose; however, iron-lithium material prices slightly decreased due to supply chain adjustments [1] Group 2: Solid-State Battery Technology - Solid-state battery technology is entering a critical window, with plans for mass production of composite current collectors starting in the second half of 2025 [1] - Accelerated layout of pilot lines for all-solid-state batteries is expected, with demonstration vehicle production anticipated between 2026 and 2027 [1] Group 3: Industry Trends and ETF - The industry inventory cycle has entered a replenishment phase, with improvements in supply-demand dynamics in certain segments [1] - New technological breakthroughs are contributing to a diversified increase in the industry's prosperity [1] - The Mechanical ETF (516960) tracks a specialized mechanical index (000812), focusing on high-quality listed companies in the mechanical equipment sector, reflecting the overall performance and development trends of related securities [1]

Investment Rating - The report maintains a "Buy" rating for the company [2][8][6] Core Views - The company reported a revenue of 7.53 billion RMB for H1 2025, representing a year-on-year increase of 18.0%, with a net profit attributable to shareholders of 310 million RMB, up 27.8% year-on-year [2] - The significant growth in net profit is primarily driven by the increase in lithium cobalt oxide sales and inventory gains from rising cobalt prices [2] - The company is expected to outperform the industry in terms of sales growth for ternary materials and lithium cobalt oxide due to its competitive advantages [2] - The company has successfully achieved large-scale production of high-voltage lithium cobalt oxide and is making progress in solid-state battery materials [5][6] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 4.557 billion RMB, with a year-on-year increase of 47.8% and a quarter-on-quarter increase of 53.1% [3] - The net profit for Q2 2025 was 190 million RMB, reflecting a year-on-year increase of 47.5% and a quarter-on-quarter increase of 63.0% [3] - The gross margin and net margin reached 10.26% and 4.20%, respectively, with a decrease in expense ratios contributing to improved profitability [3] Sales and Production - The sales volume of lithium cobalt oxide in H1 2025 was 28,800 tons, a year-on-year increase of 56.6%, significantly outpacing the industry growth rate of 27.8% [4] - The company is expected to maintain a strong market share in high-end markets due to its technological advantages in lithium cobalt oxide [4] Product Development - The company is advancing its NL structure and solid-state battery materials, with successful trials and sample deliveries to major clients [5] - The solid-state electrolyte production has reached stable ton-level output, indicating progress in the development of next-generation battery materials [5] Profitability Forecast - The company has revised its profit forecasts for 2025-2027, expecting net profits of 746 million RMB, 901 million RMB, and 1.053 billion RMB, respectively, reflecting an upward adjustment of 12%, 11%, and 10% [6] - The target price for the company's stock is set at 66.60 RMB, based on a projected PE ratio of 45 times for 2025 [6]

Group 1 - Dongwu Securities issued a report on August 21, giving a "buy" rating to Xiamen Tungsten New Energy (688778.SH, latest price: 57.3 yuan) [2] - The rating is supported by the alignment of H1 2025 performance with preliminary reports [2] - In the first half of the year, lithium cobalt oxide sales saw significant growth, benefiting from rising cobalt prices, leading to a net profit increase of over 10,000 yuan per ton [2] - The profitability of ternary batteries remained stable in Q2 2025, while iron-lithium continued to reduce losses [2] - The company demonstrated a competitive advantage in solid-state lithium sulfide technology [2] - Operating cash flow improved quarter-on-quarter in Q2, and capital expenditures slowed down [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that in Q2, the profit increment was contributed by lithium cobalt oxide, while the profitability of ternary materials remained stable [7] - The company is expected to benefit from the rising prices of cobalt, with a projected sales volume of over 60,000 tons for lithium cobalt oxide in 2025, representing a year-on-year growth of over 30% [7] - The report maintains the profit forecast for 2025-2027, expecting net profits of 806.44 million, 930.15 million, and 1,117.73 million yuan respectively, with corresponding P/E ratios of 35.86, 31.09, and 25.87 [1][7] Financial Performance Summary - For the first half of 2025, the company reported total revenue of 7.53 billion yuan, a year-on-year increase of 18%, and a net profit of 310 million yuan, up 27.8% year-on-year [7] - The gross profit margin for the first half of 2025 was 10%, with Q2 showing a slight increase to 10.3% [7] - The company’s operating cash flow for the first half of 2025 was 650 million yuan, a decrease of 31.3% year-on-year [7] Sales and Production Insights - The sales volume of lithium cobalt oxide in the first half of 2025 reached 28,800 tons, a year-on-year increase of 57% [7] - The ternary material sales volume for the first half of 2025 was approximately 31,900 tons, showing a year-on-year growth of 21% [7] - The report indicates that the company is advancing solid-state battery core materials, particularly lithium sulfide, which is expected to enhance profitability [7] Market Data - The closing price of the company's stock is 57.30 yuan, with a market capitalization of approximately 28.92 billion yuan [5] - The company has a price-to-book ratio of 2.72 and a debt-to-asset ratio of 41.49% [6][5]

Battery Production - In August, C produced 63 GWh, a month-on-month increase of 15% and a year-on-year increase of 40% [1] - B produced 25.2 GWh in August, with a month-on-month increase of 10% and a year-on-year increase of 50% [1] - E's preliminary production in August was over 12 GWh, showing a month-on-month increase of 2% and a year-on-year increase of 60% [1] - Z's production in August was close to 11 GWh, with a month-on-month increase of 5% and a year-on-year increase of 50% [1] - G produced nearly 10 GWh in August, reflecting a month-on-month increase of 10% and a year-on-year increase of 65% [1] Material Production - For ternary materials, production in August was 0.8 million tons, remaining flat month-on-month but down 30% year-on-year due to lower-than-expected demand in the US [1] - Lithium iron phosphate (LiFePO4) production was 1.8 million tons in August, flat month-on-month and unchanged year-on-year [1] - Another LiFePO4 production line produced 2.5 million tons, with a month-on-month increase of 10% and a year-on-year increase of 10% [1] - Separator production reached over 400 million square meters, remaining flat month-on-month and up 24% year-on-year [1] - Another separator line produced nearly 1 billion square meters, with a month-on-month increase of 9% and a year-on-year increase of 50% [1] - Anode production was 2.7 million tons in August, showing a month-on-month increase of 6% and a year-on-year increase of 30% [1] - Copper foil production was 8,000 tons, flat month-on-month and up 23% year-on-year [1] - Another copper foil line produced over 12,000 tons, with a month-on-month increase of 2% and a year-on-year increase of 33% [1] - Aluminum foil production was over 18,000 tons, remaining flat month-on-month and up 40% year-on-year [1] Industry Trends - The main engine manufacturers are focusing on balancing performance and cost in battery cell procurement [3] - BYD is expanding its presence in Southeast Asia [5] - CATL is experiencing growth in the energy storage market that exceeds that of the power market [5]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's H1 2025 performance slightly exceeded market expectations, with total revenue of 7.53 billion yuan, a year-on-year increase of 18%, and a net profit attributable to shareholders of 310 million yuan, up 28% [7] - The sales volume of lithium cobalt oxide saw significant growth, benefiting from rising cobalt prices, with a projected sales volume of over 60,000 tons for 2025, representing a year-on-year increase of over 30% [7] - The company is positioned well in the solid-state battery market with its lithium sulfide product, leveraging advanced technology and integrated production processes [7] Financial Summary - The company's total revenue is projected to reach 17.06 billion yuan in 2025, with a year-on-year growth of 28.33% [8] - The net profit attributable to shareholders is expected to be 806.44 million yuan in 2025, reflecting a growth of 63.22% compared to the previous year [8] - The earnings per share (EPS) is forecasted to be 1.60 yuan in 2025, with a price-to-earnings (P/E) ratio of 30.13 [8]

Core Viewpoint - The company's revenue for 2024 is projected at 13.297 billion, a year-on-year decrease of 23.19%, with a net profit attributable to shareholders of 494 million, down 6.33% year-on-year, primarily due to losses in the lithium iron phosphate business. The company maintains a "buy" rating based on its competitive advantages in differentiated products and expected growth in new technologies [1][3]. Financial Performance - In Q4 2024, the company reported revenue of 3.414 billion, a year-on-year decline of 18.48%, while net profit attributable to shareholders was 127 million, showing a year-on-year increase of 10.01% [2]. - For Q1 2025, revenue is expected to be 2.977 billion, down 9.77% year-on-year, with a net profit of 117 million, reflecting a year-on-year increase of 4.84% due to strong performance in cobalt lithium sales, which rose by 46.55% [2]. Market Position and Product Performance - The company has increased its market share in ternary and cobalt lithium materials, with cobalt lithium sales reaching 46,200 tons in 2024, up 33.52% year-on-year, significantly outpacing the market growth rate of 18.8% [2]. - Ternary material sales were 52,400 tons, up 40.03% year-on-year, while the industry growth was only 3.6%, attributed to the company's competitive advantages in high-voltage and high-power products [2]. Future Outlook - The company expects to reduce losses in lithium iron phosphate as production efficiency and capacity utilization improve in 2025. New technologies such as the NL new structure and solid-state battery materials are anticipated to contribute to revenue growth [3]. - The company has revised down its shipment and profitability assumptions for lithium iron phosphate but expects improvements in 2027 due to economies of scale. Projected net profits for 2025, 2026, and 2027 are 667 million, 809 million, and 954 million, respectively [3]. Valuation - The company maintains a "buy" rating with a revised target price of 53.72, based on a 34 times PE for 2025, down from a previous 29 times PE for 2024, reflecting expected growth in ternary and cobalt lithium shipments and contributions from new technologies [3].