Jiangsu Azure Corporation reported 2025 revenue of 8.1 billion yuan, a year-on-year increase of 20%. Net profit attributable to shareholders reached 710 million yuan, up 46% year-on-year, while adjusted net profit was 720 million yuan, rising 68%. The gross profit margin stood at 19.9%, an improvement of 2.2 percentage points, and the net profit margin attributable to shareholders was 8.8%, up 1.5 percentage points.
In the fourth quarter of 2025, revenue was 2.3 billion yuan, increasing 20% year-on-year and 10% quarter-on-quarter. Net profit attributable to shareholders was 200 million yuan, down 4% year-on-year but up 10% quarter-on-quarter. Adjusted net profit was 180 million yuan, declining 7% year-on-year and 0.7% quarter-on-quarter. The gross profit margin was 20.0%, down 0.6 percentage points year-on-year but up 1.9 percentage points quarter-on-quarter. The net profit margin attributable to shareholders was 8.6%, down 2.2 percentage points year-on-year and flat quarter-on-quarter. Fourth-quarter shipments are estimated at 180 million units, remaining stable compared to the previous quarter, with all-pole-tab products beginning to scale.
For the lithium battery segment, 2025 revenue was 3.6 billion yuan, a 39% year-on-year increase, with sales volume reaching 670 million units, up 52%. The gross profit margin was 21.6%, down 0.4 percentage points, contributing a profit of 360 million yuan. Fourth-quarter shipments are estimated at 180 million units, largely unchanged from the previous quarter, contributing a profit of 110 million yuan. Profit per unit was 0.6 yuan, up 10% quarter-on-quarter, driven by downstream price increases and product mix optimization, leading to improved profitability. For 2026, shipments are forecasted to reach 900 million units, a 34% year-on-year increase, with all-pole-tab products expected to account for 100 million units. These products, targeting applications such as BBU, robotics, and Evtol, are anticipated to see significant price increases and further enhance profitability.
The LED segment delivered strong profit performance, with 2025 revenue of 1.6 billion yuan, up 4% year-on-year, and a gross profit margin of 22.9%, improving by 3.5 percentage points. The segment contributed a net profit of 145 million yuan, with the fourth quarter adding 10-20 million yuan. The company has launched CSP chip-scale packaging products, which are expected to become a new growth driver. For 2026, the segment is projected to contribute a net profit of 200 million yuan.
The metal logistics business maintained steady growth, with 2025 revenue of 2.6 billion yuan, up 6% year-on-year, and a gross profit margin of 17.4%, increasing by 1.9 percentage points. The segment contributed a net profit of 190 million yuan, with the fourth quarter adding 50 million yuan. Stable development is anticipated going forward, with a projected net profit contribution of 200 million yuan for 2026.
Fourth-quarter expense ratios increased, while operating cash flow improved. Full-year 2025 operating expenses were 680 million yuan, up 12% year-on-year, with an expense ratio of 8.4%, down 0.6 percentage points. Fourth-quarter operating expenses were 220 million yuan, rising 57% year-on-year and 55% quarter-on-quarter, with an expense ratio of 9.6%, up 2.3 percentage points year-on-year and 2.8 percentage points quarter-on-quarter. Full-year operating cash flow was 1.59 billion yuan, up 45% year-on-year, while fourth-quarter operating cash flow was 540 million yuan, down 14% year-on-year but up 32% quarter-on-quarter. Capital expenditures for 2025 totaled 960 million yuan, increasing 33% year-on-year, with fourth-quarter capital expenditures at 420 million yuan, up 114% year-on-year and 118% quarter-on-quarter. Inventory at the end of 2025 was 1.93 billion yuan, a 27% increase from the beginning of the year.
Earnings forecasts and investment ratings have been revised upward due to the scaling of high-end products. Projected net profits for 2026 and 2027 are now 1.01 billion yuan and 1.39 billion yuan, up from previous estimates of 1.00 billion yuan and 1.31 billion yuan. A new forecast for 2028 estimates net profit attributable to shareholders at 2.01 billion yuan, representing year-on-year growth of 42%, 38%, and 45% for 2026-2028. The corresponding P/E ratios for 2026-2028 are 22x, 16x, and 11x. Based on a 2026 P/E of 30x, the target price is set at 26 yuan, with a "Buy" rating maintained.
Potential risks include weaker-than-expected downstream demand, fluctuations in raw material prices, and intensified market competition.
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