The Dongwu Securities Research Report pointed out that Shengxin Lithium Energy's Q2 lithium salt shipments increased rapidly, and its own mines contributed to core profits. The company's 26H1 net profit was 1 billion yuan, +220% year-on-year, of which 26Q2 net profit was 550 million yuan, +180%/+18% month-on-month. The results were in the lower half of the previous forecast. Lithium salt shipments increased rapidly, and owned mines contributed to core profits. We expect the company's wood velvet mine to be put into operation in 28 years, with a design capacity of 70,000 to 80,000 tons. The proportion of self-supply resources will increase dramatically in the future. The 26Q2 lithium carbonate price center continued to rise by 20,000 yuan/ton compared to Q1. We expect the company's average profit per ton of lithium salt to be about 20,000 yuan/ton. The profit mainly comes from the contribution of its own mines, which corresponds to a profit of about 60,000 to 70,000 yuan/ton per ton of its own mines. Furthermore, the impact of losses on the hedging side was basically eliminated, and losses were significantly lower than in Q1. Considering that the company's performance is in line with market expectations and maintaining the original expectations, the company's net profit for 26-28 is estimated to be 22.4/30/3.64 billion yuan, +353%/+34%/+21% year-on-year, corresponding to the 26-28 PE of 13x/10x/8x, maintaining a “buy” rating.

The Dongwu Securities Research Report pointed out that Shengxin Lithium Energy's Q2 lithium salt shipments increased rapidly, and its own mines contributed to core profits. The company's 26H1 net profit was 1 billion yuan, +220% year-on-year, of which 26Q2 net profit was 550 million yuan, +180%/+18% month-on-month. The results were in the lower half of the previous forecast. Lithium salt shipments increased rapidly, and owned mines contributed to core profits. We expect the company's wood velvet mine to be put into operation in 28 years, with a design capacity of 70,000 to 80,000 tons. The proportion of self-supply resources will increase dramatically in the future. The 26Q2 lithium carbonate price center continued to rise by 20,000 yuan/ton compared to Q1. We expect the company's average profit per ton of lithium salt to be about 20,000 yuan/ton. The profit mainly comes from the contribution of its own mines, which corresponds to a profit of about 60,000 to 70,000 yuan/ton per ton of its own mines. Furthermore, the impact of losses on the hedging side was basically eliminated, and losses were significantly lower than in Q1. Considering that the company's performance is in line with market expectations and maintaining the original expectations, the company's net profit for 26-28 is estimated to be 22.4/30/3.64 billion yuan, +353%/+34%/+21% year-on-year, corresponding to the 26-28 PE of 13x/10x/8x, maintaining a “buy” rating.