Yunnan Energy New Materials' 2Q performance exceeded expectations, separator shipments surged and price increases are imminent (UBS)
The UBS report pointed out that the median non-net profit of Yunnan Energy New Energy (002812) in 2Q corresponded to approximately 610 million yuan, of which separator shipments reached 4.1 billion square meters, exceeding market expectations.
The UBS report pointed out that the median non-net profit of Yunnan Energy New Energy (002812) in 2Q corresponded to approximately 610 million yuan, of which separator shipments reached 4.1 billion square meters, exceeding market expectations. More importantly, unit net profit has shown marginal improvement, and downstream price negotiations are nearing completion, with prices expected to increase by 7-8%. UBS believes that this indicates that the worst moment for the separator industry has passed and the supply and demand pattern is being optimized. The market has been filled with concerns about price wars and overcapacity. This performance beat and potential price increases will effectively reverse this pessimistic expectation. One-sentence conclusion: Yunnan Energy New Materials' Q2 performance is a clear signal that the industry has bottomed out. The shipment volume exceeds expectations and the upcoming price increase provides investors with an excellent opportunity for both profits and valuations to rise. Positive/negative: Positive for Yunnan Energy New Energy (002812). The market's previous pessimistic expectations for the industry may have been overpriced. This performance and price increase guidance are expected to start a round of market recovery. Catalysts: 1) The final result of the price negotiation, the implementation time of the 7-8% price increase; 2) The continued improvement of separator shipments and unit net profit in the second half of the year; 3) The production scheduling data of downstream battery factories (CATL, BYD, etc.).