Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's profitability in cathode materials remains robust, with solid-state battery material layouts accelerating [1] - The demand for lithium cobalt oxide is increasing due to the inclusion of electronic consumer products in the recycling program, leading to a significant recovery in consumer battery demand [1] - The company is enhancing its supply chain stability through strategic partnerships for raw materials and is advancing its global layout [2][3] Financial Performance - In Q3 2025, the company achieved a net profit of 245 million yuan, a year-on-year increase of 64%, with total revenue of 5.526 billion yuan, up 30% year-on-year [1] - The company’s lithium cobalt oxide sales reached 18,100 tons in Q3 2025, with a market share that remains the largest globally [1] - The projected net profits for 2025-2027 are 803 million, 1.020 billion, and 1.216 billion yuan, respectively, reflecting year-on-year growth rates of 63%, 27%, and 19% [3] Product Development - The company is focusing on technological innovation, with solid-state battery materials and new structural materials being industrialized [3] - The company has made significant progress in the production of high-voltage lithium cobalt oxide, with large-scale production of 4.53V products and trials for 4.55V products [1][3] - The company is developing differentiated products for various electric vehicle segments, including hybrid and high-end electric vehicles [2] Market Position - The company maintains a leading position in the lithium cobalt oxide market, with a strong focus on high-voltage and high-power ternary materials [2] - The company has signed long-term procurement agreements for key raw materials, enhancing its competitive edge and supply chain resilience [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][23]. Core Views - The company has solidified its leading position in lithium cobalt oxide, with rapid growth in sales and a positive outlook for new material development [2][3]. - The demand for cobalt lithium is expected to increase significantly due to the inclusion of electronic consumer products in the recycling program starting in 2025, which will boost battery consumption [2]. - The company is enhancing its product offerings in the power battery cathode materials sector, with a focus on high voltage and high power lithium-ion batteries [2][3]. Financial Performance - In the first half of 2025, the company achieved a net profit of 307 million yuan, representing a year-on-year increase of 28%, with revenues of 7.534 billion yuan, up 18% year-on-year [1]. - The gross margin for the first half of 2025 was 9.99%, an increase of 0.48 percentage points year-on-year, while the net margin was 4.06%, up 0.28 percentage points year-on-year [1]. - In Q2 2025, the company reported revenues of 4.557 billion yuan, a 48% increase year-on-year and a 53% increase quarter-on-quarter [1]. Sales Growth - The sales volume of cobalt lithium cathode materials reached 28,800 tons in the first half of 2025, a 57% increase year-on-year, with Q2 sales of approximately 16,500 tons, up 34% quarter-on-quarter [2]. - The company maintained a market share of 52% in the cobalt lithium sector, reinforcing its industry-leading position [2]. Product Development - The company is advancing its solid-state battery materials and new structure materials, with ongoing production of oxide-based cathode materials and successful testing of lithium sulfide samples [3]. - The company is also developing differentiated products for various applications, including consumer electronics and electric vehicles, to enhance its competitive edge [3]. Profit Forecast - The profit forecast has been revised upward, with expected net profits of 789 million yuan, 986 million yuan, and 1.125 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 60%, 25%, and 14% [3][4].