: Maintains a "buy" rating for Hainan Drinda New Energy Technology (02865), continue to research and develop to maintain technological advantage.

released a research report, maintaining a "buy" rating for Hainan Drinda New Energy Technology (02865). Considering the intense competition in the industry, the forecast is lowered. The company is predicted to achieve revenues of 100.0/120.3/146.7 billion yuan in 2025-2027, with net profits attributable to shareholders of -5.1/6.2/10.5 billion yuan. The corresponding PE ratios for 2026-2027 are 20/12 times. In 2025Q1-3, the company achieved revenue of 56.8 billion yuan, a year-on-year decrease of 30.7%. The net profit attributable to shareholders was -4.2 billion yuan, a year-on-year decrease of 0.5%. After deducting non-recurring profit, the net profit attributable to shareholders increased by 2.7%. The gross profit margin and net profit margin were 1.5% and -7.4% respectively, a year-on-year increase of 1.2% and a decrease of 2.3% (4 expense ratios increased by 2.4pcts). The report mentioned that the company's overseas sales ratio is rapidly increasing, with a diversified layout of overseas production capacity. The overseas sales ratio increased significantly from 23.85% in 2024 to 51.87%, with a gross profit margin of 4.5% for overseas sales, an increase of 2.8pcts compared to the previous year. In comparison, the gross profit margin for domestic sales was -0.8%, a decrease of 1.7pcts. The competition in the domestic market remains fierce. In terms of overseas production capacity, the company has officially signed a strategic cooperation agreement with a local component customer in Turkey to jointly build an efficient battery project, filling the structural gap in regional battery production capacity; at the same time, it is prudently promoting the 5GW battery production capacity project in Oman. The company continues to promote cost reduction and efficiency enhancement through N-type technology, and is also laying out next-generation battery technology. Drinda continues to reduce costs and increase efficiency through technologies such as half-cell edge passivation, wave back fields, and ultra-fine grid; meanwhile, the conversion efficiency of the BC battery in pilot production can increase by 1-1.5 percentage points compared to mainstream N-type batteries, with all parameters consistent with top industry levels. In terms of long-term technology, the lab efficiency of the perovskite tandem solar cell developed in cooperation with external institutions has reached 32.08%.