Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The low-altitude economy is gaining momentum with significant policy support and market developments, including the issuance of the first overseas pilot license for a manned aircraft by Xiaopeng Huaitian and a procurement agreement for 350 eVTOLs with Autocraft [17][25] - The average stock performance in the low-altitude economy sector increased by 2.3% from September 8 to September 12, with notable gains from companies like Wolong Electric Drive (+19.9%) and Changyuan Donggu (+18.4%) [4][10] Summary by Sections Industry Dynamics - On September 6, Wenchang City released a draft for the low-altitude economy industry development plan, focusing on aerospace equipment and general aviation, aiming to create a composite industry system integrating low-altitude economy, aerospace, and cultural tourism [22] - Sichuan Province announced a smart agriculture plan on September 9, targeting the establishment of 20 agricultural low-altitude demonstration sites by 2025 and 100 by 2028, with a goal of having over 15,000 agricultural drones [23] Individual Company Developments - Xiaopeng Huaitian's "Land Aircraft" received the first overseas pilot license for a Chinese enterprise, marking a breakthrough in the Middle East market for eVTOLs [25] - Ping An Property & Casualty disclosed that it has insured over 150,000 drones, providing risk coverage exceeding 90 billion yuan, and has established a new risk research institute for the low-altitude economy [26] - Chengdu Iron Tower proposed the creation of a "three-network" system for the low-altitude economy, covering eight application scenarios, leveraging its extensive site resources [27]

Group 1: Solid-State Battery Industry - The solid-state battery industrialization is progressing with support from policies, material advancements, and application developments. Key companies to watch include Xiamen Tungsten, Tianqi Lithium, and others in the supply chain [2][3] - Major developments include the mass production of semi-solid batteries by Zhuhai Guanyu and the upcoming solid-state battery projects by Yiyuan Lithium Energy and others [2] Group 2: Domestic Energy Storage Systems - The domestic energy storage system bidding capacity reached 47.2 GWh in August 2025, reflecting a year-on-year increase of 2158% and a month-on-month increase of 1142%. Cumulative bidding for the year reached 144.1 GWh, up approximately 216% year-on-year [3] - The high demand for energy storage systems indicates a strong need for new power systems in China, laying a foundation for stable market development in 2026-2027. Key companies include Sungrow Power, Yiyuan Lithium Energy, and others [3] Group 3: AIDC Power Equipment Sector - AIDC power equipment companies are expected to benefit from increased capital expenditures, with Alibaba reporting a capital expenditure of 38.7 billion yuan in Q2 2025, up 220% year-on-year [3][32] - The demand for data center construction remains strong, and companies like Jinpan Technology and New Special Electric are positioned to gain from this trend [3][32] Group 4: Power Grid Equipment Sector - Power grid equipment companies are experiencing steady growth, with major firms maintaining robust performance in the first half of 2025. A surge in high-voltage bidding is anticipated in the second half of the year [4][42] - Key companies to focus on include Guodian NARI, Siyi Electric, and others, as they expand their product offerings and international presence [4][42] Group 5: Wind Power Sector - Wind power companies are seeing simultaneous increases in volume and profit, with significant growth in both onshore and offshore projects expected in the latter half of 2025 [4][59] - Companies like Goldwind Technology and Dongfang Cable are recommended for investment as they are well-positioned to benefit from this growth [4][59] Group 6: Investment Recommendations - The report suggests monitoring the recovery of the power grid equipment sector, the progress of offshore wind projects, the advancement of solid-state battery industrialization, and the global demand for energy storage installations [4]

Company Overview - Zhuhai Guanyu Battery Co., Ltd. is located in Zhuhai, Guangdong Province, and was established on May 11, 2007. The company went public on October 15, 2021. Its main business involves the research, production, and sales of consumer batteries, with revenue composition being 88.94% from consumer batteries, 7.95% from power and energy storage, and 3.11% from other sources [1]. Stock Performance - As of September 10, the stock price of Zhuhai Guanyu fell by 2.01% to 22.41 CNY per share, with a trading volume of 325 million CNY and a turnover rate of 1.27%. The total market capitalization is 25.37 billion CNY [1]. - Year-to-date, the stock price has increased by 41.99%, with a 3.18% rise over the last five trading days, 47.05% over the last 20 days, and 61.65% over the last 60 days [1]. Financial Performance - For the first half of 2025, Zhuhai Guanyu reported a revenue of 6.098 billion CNY, representing a year-on-year growth of 14.03%. The net profit attributable to shareholders was 117 million CNY, up by 14.77% year-on-year [2]. - The company has distributed a total of 942 million CNY in dividends since its A-share listing, with 740 million CNY distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 17.19% to 21,400, while the average circulating shares per person decreased by 14.32% to 52,804 shares [2]. - Among the top ten circulating shareholders, Invesco Great Wall Research Selected Stock A (000688) is the sixth largest, holding 26.7966 million shares as a new shareholder [3]. Industry Context - Zhuhai Guanyu operates within the power equipment industry, specifically in the battery sector, focusing on lithium batteries. The company is associated with several concept sectors, including the Apple supply chain, lithium batteries, Apple Samsung, new energy vehicles, and share buybacks [1].

Core Insights - Zhuhai Guanyu has achieved large-scale production of semi-solid batteries and has successfully passed certifications from multiple clients, indicating strong market recognition in high-end battery technology [1] - The company has invested nearly 5 billion yuan in research and development over the past five years, focusing on solid-state batteries, stacking technology, and steel-shell batteries to build long-term technological barriers [1] - The company is recognized for its lithium metal anode technology, which is considered a core material for solid-state batteries, and has established a fully inert gas-protected experimental line for all-solid-state lithium batteries [1][3] - The launch of a 15,000mAh battery for mobile concept devices marks a significant breakthrough in high energy density battery technology [3] - The successful application of 100% silicon anode materials and high-performance electrolyte technology in client projects demonstrates the company's strong technical reserves and innovation capabilities [3] Industry Position - With ongoing mass production of semi-solid batteries and continuous breakthroughs in solid-state technology, Zhuhai Guanyu is positioned to maintain a leading role in the global new energy battery market [1] - The company aims to provide core power support for consumer electronics and new energy vehicles, further expanding its market share in the high-end battery sector [1]

Core Viewpoint - Zhuhai Guanyu has made significant advancements in solid-state battery technology, launching a 15000mAh battery for mobile concept devices, indicating a substantial breakthrough in high energy density battery technology [1] Group 1: Technological Advancements - The company has successfully applied 100% silicon anode materials and high-performance electrolytes in client applications [1] - Zhuhai Guanyu has achieved large-scale production of semi-solid batteries and has passed certifications from multiple clients, demonstrating its technical strength in the high-end battery sector [1] - The company has invested nearly 5 billion yuan in research and development over the past five years, focusing on cutting-edge technologies such as solid-state batteries, stacking processes, and steel-shell batteries [1] Group 2: Market Position and Future Outlook - The company is recognized for its leading position in lithium metal anode technology, which is considered a core material for solid-state batteries [1] - Zhuhai Guanyu has established a fully inert gas-protected experimental line for all-solid-state lithium batteries, marking a new level of independent R&D capability in this advanced technology field [1] - With ongoing mass production of semi-solid batteries, comprehensive client collaborations, and continuous breakthroughs in solid-state technology, the company aims to maintain a leading position in the global new energy battery market, providing core power support for consumer electronics and new energy vehicles [1]

Core Viewpoint - Zhuhai Guanyu experienced a decline of 5.04% on September 9, with a stock price of 22.60 CNY per share and a total market capitalization of 25.585 billion CNY [1] Company Overview - Zhuhai Guanyu Battery Co., Ltd. is located in Doumen District, Zhuhai City, Guangdong Province, and was established on May 11, 2007, with its listing date on October 15, 2021 [1] - The company's main business involves the research, development, production, and sales of consumer batteries, with revenue composition as follows: consumer batteries 88.94%, power and energy storage 7.95%, and others 3.11% [1] Fund Holdings - According to data from the top ten holdings of funds, Guolian Fund has one fund heavily invested in Zhuhai Guanyu. The Guolian Value Growth 6-Month Holding Mixed A Fund (009347) increased its holdings by 52,700 shares in the second quarter, totaling 256,400 shares, which accounts for 4.07% of the fund's net value, ranking as the fifth-largest holding [2] - The fund has a current scale of 78.6169 million CNY and has achieved a year-to-date return of 34.84%, ranking 1632 out of 8179 in its category [2] Fund Manager Performance - The fund manager, Luo Jian, has a tenure of 4 years and 278 days, with a total asset scale of 90.0117 million CNY, experiencing a best return of -9.38% and a worst return of -46.85% during his tenure [3] - Co-manager Liang Qinzhi has a tenure of 315 days, managing assets of 353 million CNY, with a best return of 54.25% and a worst return of 0% during his tenure [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [7][14]. Core Insights - The company reported a revenue of 6.098 billion yuan for the first half of 2025, representing a year-on-year growth of 14.03%, and a net profit attributable to shareholders of 117 million yuan, up 14.77% year-on-year. In Q2 2025, revenue reached 3.599 billion yuan, with a significant year-on-year increase of 28.62%, and net profit of 141 million yuan, reflecting a 53.09% growth [4][5]. - The growth in revenue and profit is primarily driven by an increase in market share for consumer batteries and a surge in the performance of power-related businesses, particularly in the automotive low-voltage systems and drone sectors [5][6]. - The company has significantly increased its R&D investment, with expenses rising by 23.2% year-on-year to 818 million yuan, accounting for 13.42% of revenue. This investment is aimed at enhancing technology capabilities and developing new materials and products [5][6]. Financial Performance - The company is projected to achieve revenues of 13.9 billion yuan, 17 billion yuan, and 19.8 billion yuan for the years 2025, 2026, and 2027, respectively. Correspondingly, net profits are expected to be 606 million yuan, 1.383 billion yuan, and 1.930 billion yuan [7][10]. - The financial metrics indicate a steady growth trajectory, with a projected net profit growth rate of 40.72% in 2025 and 128.36% in 2026 [10][11]. Business Development - The company has made technological advancements, including the mass production of steel-shell batteries with a volumetric energy density of 900Wh/L, which are expected to be used in smart wearable devices. The automotive low-voltage lithium battery products have passed audits from several major automotive manufacturers [6][7]. - The company is optimizing its production capacity by adjusting project plans to better align with market demand, including shifting production lines to consumer batteries and delaying some projects [6][7]. Market Position - The company is well-positioned in the market, with a strong focus on innovation and strategic partnerships with leading automotive manufacturers, which enhances its competitive edge in the battery sector [6][7].

Core Insights - Zhuhai Guanyu (688772.SH) has commenced mass production and delivery of its semi-solid-state batteries, receiving increasing recognition from customers [1] - The company is actively collaborating with clients on the research and development of all-solid-state batteries to facilitate future mass production and commercialization [1] - In the energy storage sector, the company is selectively targeting high-quality customers and projects, focusing on opportunities in high-quality household storage battery business and domestic large-scale storage systems [1] - The company's energy storage business is expected to rebound in the first half of 2025, with both orders and year-on-year comparisons showing improvement [1]

Market Overview - The A-share market opened with mixed results, with the Shanghai Composite Index down 0.02%, the Shenzhen Component Index up 0.33%, and the ChiNext Index up 0.21% [4][5] - The overall market sentiment showed a decline in the ChiNext Index, which fell by 1% [2] Sector Performance - Precious metals sector led the gains with an increase of 2.13%, followed by other sectors such as small metals (+1.67%) and sodium-ion batteries (+1.40%) [6] - Solid-state battery concept stocks continued their strong performance, with companies like Fengyuan Co. and Hongxing Development achieving consecutive gains [3] Hong Kong Market - The Hong Kong market opened with the Hang Seng Index up 0.09% and the Hang Seng Tech Index up 0.11% [7][8] - Real estate stocks in Hong Kong saw significant increases, with Country Garden rising by 14.58% following policy adjustments aimed at optimizing the real estate market in Shenzhen [6]

Summary of Zhuhai Guanyu Conference Call Company Overview - **Company**: Zhuhai Guanyu - **Industry**: Battery Manufacturing, focusing on consumer batteries, solid-state batteries, and emerging technologies in drones and energy storage Key Points and Arguments Revenue and Growth Projections - Zhuhai Guanyu expects revenue to reach **17 billion RMB** by **2026**, driven by increased R&D investments translating into higher revenue scales [2][6] - The company anticipates a significant increase in mobile battery orders, particularly in the North American market, with a target production of **250-260 million steel shell batteries** [4][12] Technological Innovations - The company has made significant advancements in battery technology, including the transition from traditional soft-pack to disc technology and the introduction of **25% silicon-carbon anodes** [3] - Innovations in consumer batteries include a **15,000 mAh battery** and samples using **100% silicon anodes** and solid-state electrolytes, addressing usage bottlenecks and enhancing consumer purchasing intent [10][11] Business Structure and Market Position - The business structure has shifted, with mobile battery orders doubling annually, while previously dominant laptop battery sales have decreased [4] - The Zhejiang subsidiary has turned profitable, focusing on drone and small energy storage markets, achieving **1 billion RMB** in revenue in the first half of **2025**, with drone shipments increasing over **200%** year-on-year [5][9] Solid-State Battery Developments - Progress in solid-state batteries includes addressing low-temperature performance issues through high ratios of solid-state electrolytes, enhancing overall product value [7] Financial Implications - The adjustment of depreciation policies from **5 years to 8 years** for existing production lines is expected to positively impact financials, reducing annual depreciation costs significantly [4][22] Market Trends and Consumer Demand - The consumer battery sector is expected to undergo significant changes, with technological innovations leading to increased energy density and consumer interest [10][20] - The company is also exploring opportunities in the drone and robotics sectors, with a focus on high discharge performance and energy density [19][21] Competitive Landscape - The company has successfully broken into the domestic Android market, increasing its market share and reducing reliance on traditional competitors [4][5] Future Business Segments - Future revenue growth is anticipated from various segments, including mobile batteries, drones, and specialized batteries, with projections of **2-3 billion RMB** growth from mobile batteries alone [22][23] International Expansion - The Malaysian factory is on track for completion by the end of **2025**, with cautious expansion strategies and established partnerships with over half of the top 20 global automotive companies [26] Other Business Areas - The company is also focusing on electric tools, cleaning appliances, and smart wearables, with expected growth rates exceeding **50%** in these segments [27] Additional Important Insights - The company’s strategic focus on high-value products, such as silicon anode batteries and solid-state technologies, positions it well for future market demands and profitability [6][14][16] - The emphasis on partnerships with leading tech companies like Meta, Microsoft, Google, and Apple highlights the company's competitive edge in the battery supply chain [27]