LEAD INTELLIGENT(SZ:300450)2025-11-07 01:28Summary of Wuxi Lead Intelligent Equipment Conference Call Company Overview - Company: Wuxi Lead Intelligent Equipment (Ticker: 300450.SZ) - Industry: Capital Goods, specifically focused on automation equipment for lithium batteries, photovoltaic cells, consumer electronics, and film capacitors [12][26] Key Financial Highlights - 3Q25 Results: - Earnings increased by 199% year-on-year (y-y) to CNY 446 million - Revenue grew by 14% y-y to CNY 3.8 billion - Gross Profit Margin (GPM) contracted by 5.7 percentage points (pp) y-y to 30.9% due to low-margin battery equipment orders recognized from FY24 [1][15] - Order Intake: - Strong order momentum with 9M25 new orders exceeding the full-year level for FY24 (CNY 17.5 billion) [1] - Management expects a recovery in GPM in 4Q25, driven by the recognition of higher-margin orders [1] Future Outlook - FY26 Forecast: - Positive outlook supported by demand for all-solid-state battery (ASSB) commercialization and energy storage system (ESS) capacity expansion [2] - Anticipated incremental orders for ASSB equipment from domestic manufacturers in 2H25 and FY26 [2] - Expected solid demand for battery equipment in FY26 due to supply shortages of ESS battery cells in China [2] Valuation and Target Price - Target Price: Increased from CNY 41 to CNY 70, based on a P/E ratio of 45x FY26F EPS of CNY 1.55 [3][5] - Earnings Growth: FY26-27F earnings expected to increase by 10-12% [3] - Current Stock Valuation: Trading at 35x FY26F P/E [3] Financial Projections - Revenue Projections: - FY25F: CNY 14.49 billion (new estimate) - FY26F: CNY 18.85 billion (new estimate) - FY27F: CNY 20.90 billion (new estimate) [4][16] - Net Profit Projections: - FY25F: CNY 1.67 billion - FY26F: CNY 2.42 billion - FY27F: CNY 2.76 billion [4][16] Risks and Considerations - Downside Risks: - Lower-than-expected orders from battery cell makers - Higher-than-expected bad debt provisions in the solar sector - Lower-than-expected commercialization of ASSBs [13][17] Additional Insights - Market Performance: The stock has shown a 205.3% increase over the past 12 months, despite a recent decline of 11.9% over the last month [9] - ESG Considerations: The company is viewed as ESG-friendly due to its role as an equipment supplier in the EV and solar sectors [14] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, future outlook, valuation, and associated risks.