Initiation of Coverage: Jinbo Shares (688598.SH)

Date: September 29, 2025
Sector: Power Equipment / Advanced Materials
Rating: BUY (Initiation)
Target Price: Implied Upside via Valuation Re-rating
Current Price: CNY 33.98 (as of Sep 26, 2025)

Executive Summary

Jinbo Shares (688598.SH) is undergoing a fundamental transformation from a cyclical photovoltaic (PV) thermal field component supplier to a diversified platform company specializing in high-performance carbon-based composite materials. While the market has historically valued Jinbo through the lens of the volatile PV sector, we argue that this valuation framework is obsolete. The company’s core competency lies in its proprietary Carbon-Carbon (C/C) and Carbon-Ceramic (C/SiC) technology platforms, which are now driving explosive growth in two new, high-margin verticals: Carbon-Ceramic Brake Discs for New Energy Vehicles (NEVs) and Carbon-Based Anode Materials for Lithium-Ion Batteries.

We initiate coverage with a BUY rating. Our investment thesis is anchored on three pivotal shifts:
1. The Inflection Point in Carbon-Ceramic Brakes: Technological breakthroughs in manufacturing processes (specifically low-cost Chemical Vapor Infiltration combined with resin impregnation) have reduced unit costs by approximately 95% compared to imported alternatives. This cost reduction is catalyzing a penetration shift from ultra-luxury sports cars to mainstream premium NEVs (priced at CNY 200k–500k), unlocking a massive Total Addressable Market (TAM).
2. Platform Diversification De-risking the PV Cycle: The company has successfully diversified its revenue base. In the first half of 2025 (25H1), the revenue contribution from Lithium Battery and Transportation sectors reached 48% and 26%, respectively, surpassing the traditional PV segment (25%). This structural change reduces earnings volatility and warrants a valuation multiple expansion.
3. Operational Turnaround and Margin Recovery: After a challenging 2024 marked by industry-wide overcapacity and asset impairments in the PV sector, Jinbo is poised for a robust financial recovery. We project a return to profitability in 2025, with net profit accelerating to CNY 219 million in 2026 and CNY 366 million in 2027, driven by operating leverage in the new business lines.

We forecast the company’s Net Profit Attributable to Shareholders to reach CNY 219 million in 2026 and CNY 366 million in 2027. Based on these projections, the stock trades at an estimated Forward P/E of 31.7x for 2026 and 19.0x for 2027. Given the high-growth trajectory of the carbon-ceramic brake business (projected CAGR >100% in the near term) and the strategic moat in advanced materials, we believe the current valuation does not fully reflect the company’s transition into a high-growth platform entity.

Key Takeaways

1. Strategic Pivot: From "PV Supplier" to "Advanced Material Platform"

The most significant mispricing in Jinbo Shares stems from the market’s lingering perception of it as a pure-play PV supplier. Historically, Jinbo dominated the global market for carbon-based thermal field components used in monocrystalline silicon pullers. However, the PV industry’s severe consolidation and price wars in 2023-2024 severely impacted margins and sentiment.

The Reality Shift:
Jinbo has leveraged its core expertise in carbon fiber preform preparation, chemical vapor deposition (CVD), and high-temperature graphitization to expand into adjacent high-value markets. The company now operates across five key sectors:
* Photovoltaics (PV): Thermal field components (Base Cash Cow).
* Transportation: Carbon-ceramic brake discs (High-Growth Engine).
* Lithium Batteries: Carbon-based anode materials and conductive agents (Emerging Growth Pole).
* Semiconductors: Ultra-high purity thermal field parts for SiC substrate manufacturing (Import Substitution).
* Hydrogen Energy: Gas diffusion layers (GDL) and bipolar plates (Early Stage/Strategic Reserve).

Evidence of Diversification:
* Revenue Mix Transformation: In 25H1, the revenue structure was fundamentally altered. Lithium battery-related businesses contributed 48% of total revenue, Transportation (brakes) contributed 26%, while PV dropped to 25%. This is a stark contrast to previous years where PV accounted for the vast majority of income.
* R&D Intensity: The company maintains a high R&D expenditure ratio of 12.7% (CNY 52 million in 25H1), underscoring its commitment to technological iteration rather than mere capacity expansion. This R&D focus is critical for maintaining leadership in the rapidly evolving carbon-ceramic and battery material sectors.

2. The Carbon-Ceramic Brake Revolution: Cost Down, Penetration Up

The core driver of our bullish outlook is the commercial viability of carbon-ceramic brake discs in the mass-premium NEV segment. Traditionally, carbon-ceramic brakes were exclusive to supercars (e.g., Ferrari, Porsche GT models) due to exorbitant costs (often exceeding CNY 100,000 per set). Jinbo has disrupted this paradigm.

A. Technological Breakthrough & Cost Reduction

Jinbo has pioneered a hybrid manufacturing process combining Chemical Vapor Infiltration (CVI) with Resin Impregnation.
* Traditional CVI: High performance but extremely slow (cycles taking months) and energy-intensive, leading to high costs.
* Jinbo’s Hybrid Approach: By optimizing the preform structure and using rapid resin impregnation followed by controlled pyrolysis and limited CVI densification, Jinbo has drastically reduced production cycles.
* Cost Impact: This innovation has lowered the manufacturing cost to roughly 1/20th of imported equivalents.
* Long-Fiber Discs: Unit price expected to drop below CNY 2,000.
* Short-Fiber Discs: Unit price expected to drop below CNY 1,000.

This price point makes carbon-ceramic brakes economically feasible for vehicles priced between CNY 200,000 and CNY 500,000, a segment with significantly higher volume than the ultra-luxury niche.

B. Market Penetration Catalysts

• OEM Adoption: The inclusion of carbon-ceramic brakes as standard equipment in high-profile models like the Xiaomi SU7 Ultra serves as a powerful market educator and catalyst. It signals to other OEMs that this feature is no longer just a luxury badge but a performance necessity for high-power EVs (which require superior heat dissipation and weight reduction).
• Performance Benefits for EVs:
  • Weight Reduction: Carbon-ceramic discs are ~50% lighter than cast iron, improving range and handling.
  • Durability: Lifespan exceeds 300,000 km, often lasting the life of the vehicle, reducing long-term ownership costs.
  • Braking Performance: Superior fade resistance under repeated high-load braking, crucial for heavy, high-torque EVs.

C. Capacity and Supply Chain Moat

• Capacity Expansion: Jinbo has planned a full-production capacity of 4 million discs by 2027. This scale is critical to meeting the anticipated surge in demand.
• First-Mover Advantage: As one of the few domestic suppliers capable of mass-producing high-quality carbon-ceramic discs with consistent yield rates, Jinbo has secured design wins (nomination points) with multiple mainstream automotive OEMs. The barrier to entry is high due to the complexity of the manufacturing process and the stringent safety certification requirements in the automotive industry.

D. Market Space Calculation (2026E)

Based on our analysis of NEV sales trends and penetration rates, we estimate the addressable market for carbon-ceramic brakes in China will expand significantly by 2026.

Note: Base case assumptions align with the report’s "Optimistic" scenario for higher segments and conservative for lower segments, totaling a substantial market opportunity.

Jinbo’s projected revenue growth in the transportation sector reflects this uptake: 169% YoY growth in 2026 and 27% in 2027.

3. Lithium Battery Business: The Second Growth Curve

While the brake business captures headlines, the lithium battery material segment is already the largest revenue contributor (48% in 25H1). This business leverages the same carbonization and graphitization capabilities used in PV and brake products.

A. Product Portfolio

• Carbon-Based Anode Materials: Specifically tailored for high-performance applications.
• Conductive Agents (Carbon Powder): Enhancing battery conductivity and charging speeds.

B. Strategic Tailwinds

• Fast-Charging Trend: The industry shift towards 4C/5C super-fast charging requires anode materials with higher structural stability and conductivity. Jinbo’s carbon-based composites offer superior performance in these metrics compared to traditional graphite.
• Energy Storage System (ESS) Boom: The explosive growth in large-scale ESS demands cost-effective, long-cycle-life battery materials. Jinbo’s scalable production capabilities position it well to serve this volume-driven market.

C. Financial Projection

We expect the lithium battery segment to maintain high momentum:
* 2025E Revenue Growth: +119% YoY.
* 2026E Revenue Growth: +60% YoY.
* 2027E Revenue Growth: +60% YoY.

The assumption is that Jinbo will achieve batch supply to mainstream negative electrode manufacturers starting in 2026. This transition from pilot/small-batch to mass supply will drive economies of scale, improving gross margins in this segment over time.

4. Photovoltaics: Stabilization Amidst Industry Consolidation

The PV sector, once the engine of Jinbo’s growth, is currently in a phase of painful consolidation. However, we view the worst as being behind us, with the sector transitioning from "unstructured expansion" to "ordered competition."

A. Industry Dynamics

• "Anti-Involution" Consensus: Leading players and regulatory bodies are increasingly aligned on preventing destructive price wars. Capacity expansion by new entrants has slowed, and inefficient legacy capacity is being exited.
• Supply-Demand Rebalancing: As demand for solar installations remains robust globally, the supply-side cleanup is expected to improve utilization rates and pricing power for top-tier suppliers.

B. Jinbo’s Competitive Position

• Cost Leadership: Jinbo’s integrated production model and technological efficiency allow it to produce thermal field components at lower costs than competitors.
• Customer Stickiness: The company maintains deep ties with leading crystalline silicon manufacturers. In a downturn, customers prioritize reliability and quality consistency, favoring established leaders like Jinbo.
• Replacement Demand: Even if new capex slows, the replacement cycle for thermal field components (which wear out during operation) provides a stable baseline revenue stream.

We expect the PV segment to act as a cash flow stabilizer rather than a growth driver in the next 2-3 years. Its role is to fund the R&D and capex required for the higher-growth Transportation and Lithium segments.

5. Emerging Frontiers: Semiconductor & Hydrogen

While currently small contributors to revenue, these segments highlight the versatility of Jinbo’s technology platform and provide long-term optionality.

• Semiconductor: Jinbo is developing ultra-high purity thermal field components for Silicon Carbide (SiC) substrate manufacturing. With purity levels reaching 5ppm, these components support optical-grade SiC production. Given the strategic importance of SiC in power electronics for EVs and grid infrastructure, and the push for domestic substitution in China, this segment has high potential.
• Hydrogen Energy: The company has developed carbon paper for Gas Diffusion Layers (GDL) and flexible carbon-based bipolar plates for fuel cells. These products have passed verification by leading domestic enterprises and achieved batch delivery. As the hydrogen economy matures, this could become a significant revenue pillar post-2027.

Financial Analysis & Forecasts

Historical Performance Review (2023-2024)

Jinbo’s recent financial history reflects the turbulence of the PV cycle and the heavy upfront investments in new capacities.

• 2023: Revenue of CNY 1,072 million (-26.1% YoY); Net Profit of CNY 202 million (-63.3% YoY). The decline was driven by falling PV component prices.
• 2024: A year of significant distress. Revenue halved to CNY 537 million (-49.9% YoY). The company reported a net loss of CNY 815 million.
  • Key Driver of Loss: A massive asset impairment loss of CNY 582 million was recorded, primarily related to outdated PV inventory and fixed assets. This was a non-cash, one-time charge that cleaned up the balance sheet, setting the stage for future profitability.
  • Gross Margin: Collapsed to -16.0%, reflecting selling below cost to clear inventory and low utilization rates.

Forecast Assumptions (2025-2027)

Our financial model is built on the following core assumptions:

1. Revenue Recovery & Growth:

   • 2025E: Revenue rebounds to CNY 1,017 million (+89.4% YoY). This is driven by the initial ramp-up of carbon-ceramic brake deliveries and strong growth in lithium battery materials. The PV segment stabilizes.
   • 2026E: Revenue surges to CNY 1,819 million (+78.9% YoY). Carbon-ceramic brakes enter mass adoption phase; lithium business scales.
   • 2027E: Revenue reaches CNY 2,460 million (+35.2% YoY). Growth moderates but remains robust as the base expands.

2. Margin Expansion:

   • Gross Margin: Expected to recover from -9.3% in 2025E to 14.1% in 2026E and 17.9% in 2027E.
     • Logic: As production volumes increase, fixed costs are spread over more units (operating leverage). The mix shift towards higher-value-added brake discs and specialized battery materials improves the overall blend. The one-time impairment drag is removed.
   • Net Margin: Improves from -8.0% in 2025E to 12.1% in 2026E and 14.9% in 2027E.

3. Expense Control:

   • R&D: Remains elevated in absolute terms (CNY 132m-148m annually) to sustain technological leadership, but the R&D ratio decreases as revenue scales.
   • Selling & Admin: Managed tightly, with S&A expenses growing slower than revenue.

4. Capital Expenditure:

   • Significant capex continues (CNY 401m in 2025E, CNY 601m in 2026E, CNY 801m in 2027E) to build the 4 million disc capacity and expand lithium material lines. This is funded by a mix of operating cash flow (recovering in 2025/2026) and moderate debt financing.

Detailed Financial Projections

(Source: Company Reports, Aijian Securities Estimates)

Balance Sheet & Cash Flow Health

• Asset Structure: The company maintains a relatively light debt load. The Debt-to-Asset ratio is projected to rise moderately from 17.9% (2024) to 33.7% (2027E) to fund expansion, which remains conservative and manageable.
• Liquidity: Current Ratio is expected to remain healthy (>1.2x), ensuring short-term obligations can be met.
• Cash Flow:
  • 2024: Operating Cash Flow was positive (CNY 198m) despite the net loss, due to working capital adjustments and depreciation.
  • 2025E: OCF surges to CNY 1,288 million, driven by the reversal of working capital drains and improved operational efficiency.
  • 2026-2027: OCF remains robust (CNY 1,594m in 2027E), supporting self-funded growth and reducing reliance on external financing.

Valuation

Relative Valuation Approach

Historically, Jinbo was valued as a PV material supplier, commanding P/E multiples in line with the solar sector (often 15x-25x during growth phases, but compressing during downturns). However, given the structural shift in its business mix, we argue that a Sum-of-the-Parts (SOTP) or a Higher Growth Multiple is appropriate.

1. Peer Comparison:

   • Traditional PV material peers trade at forward P/Es of 10x-15x due to low growth expectations.
   • Automotive lightweighting and advanced material peers often trade at 25x-40x forward P/E due to higher growth visibility and technological barriers.
   • Jinbo’s unique position straddles both, but the growth is coming from the Auto/Lithium side.

2. Forward P/E Analysis:

   • 2026E P/E: At the current price of CNY 33.98 and estimated EPS of CNY 1.07, the 2026E P/E is 31.7x.
   • 2027E P/E: The 2027E P/E drops to 19.0x based on EPS of CNY 1.79.

3. Valuation Justification:

   • A 2027E P/E of 19x is reasonable for a company delivering ~67% net profit growth in that year and establishing a dominant position in a nascent, high-barrier market (carbon-ceramic brakes).
   • If we apply a conservative 25x multiple to the 2027E EPS (reflecting its status as a high-tech platform company), the implied target price would be CNY 44.75, representing ~32% upside from current levels.
   • The market has not yet fully priced in the scalability of the brake business. Once the 4 million disc capacity is utilized, earnings could potentially exceed our base case, offering further upside optionality.

EV/EBITDA Perspective

• 2026E EV/EBITDA: ~19.4x
• 2027E EV/EBITDA: ~15.1x

These multiples are attractive for a hardware/manufacturing business with double-digit revenue growth and expanding EBITDA margins, especially when compared to global specialty chemical and material companies which often trade at 15x-20x EV/EBITDA.

Risks / Headwinds

While the investment case is compelling, investors must consider the following risks:

1. Market Penetration Risk (Carbon-Ceramic Brakes)

• Adoption Speed: Our thesis relies on the rapid adoption of carbon-ceramic brakes in the CNY 200k-500k vehicle segment. If OEMs hesitate due to residual cost concerns or if consumers do not perceive sufficient value over high-performance cast iron/carbon-composite alternatives, penetration rates could lag forecasts.
• Technology Route: Alternative braking technologies or improvements in traditional materials could erode the competitive advantage of carbon-ceramics.

2. Raw Material Price Volatility

• Carbon Fiber & SiC Precursors: The cost structure of carbon-ceramic discs is sensitive to the prices of precursor materials (carbon fiber, silicon carbide powder). Significant spikes in these input costs could compress gross margins, especially if Jinbo cannot pass these costs onto OEMs quickly.
• Supply Chain Security: Dependence on specific grades of carbon fiber requires secure long-term supply agreements.

3. Regulatory and Environmental Risks

• Production Standards: The manufacturing process involves high-temperature treatments and chemical vapors. Stricter environmental regulations in China could increase compliance costs or limit production capacity expansions.
• Product Certification: Automotive components require rigorous safety certifications. Any delay in obtaining certifications for new OEM models or in international markets (Europe/US) could hinder export growth.

4. Photovoltaic Sector Drag

• Prolonged Downturn: If the PV industry’s consolidation takes longer than expected, or if prices for thermal field components fall further, the "cash cow" segment may continue to drag on overall profitability and sentiment.
• Technological Disruption: Changes in crystal pulling technology (e.g., larger crucibles, different heating methods) could alter the specification or volume demand for Jinbo’s PV products.

5. Execution Risk

• Yield Rates: Achieving high yield rates in carbon-ceramic production is technically challenging. Failure to meet the assumed yield improvements could result in higher unit costs and lower margins than projected.
• Capacity Ramp-up: Delays in the construction or commissioning of the new 4 million disc capacity would push revenue recognition into later years.

Rating / Sector Outlook

Sector Outlook: Power Equipment & Advanced Materials

The broader Power Equipment sector is bifurcated. Traditional PV and Wind components face margin pressure due to overcapacity. However, the Advanced Materials sub-sector, particularly those enabling electrification and lightweighting, enjoys a favorable secular tailwind.
* NEV Lightweighting: Critical for extending range and improving performance. Carbon-based composites are at the forefront of this trend.
* Battery Innovation: The race for faster charging and higher density drives demand for specialized carbon materials.
* Import Substitution: In semiconductors and high-end automotive parts, there is a strong national policy push in China to localize supply chains, benefiting domestic leaders like Jinbo.

Investment Rating: BUY

We assign a BUY rating to Jinbo Shares (688598.SH).
* Time Horizon: 6-12 Months.
* Relative Performance Expectation: We anticipate the stock will outperform the CSI 300 Index by more than 15% over the next 6 months, driven by earnings surprises on the upside as the new businesses scale and the market re-rates the stock from a "PV Cyclical" to a "Growth Platform" multiple.

Investment View

Why Buy Now?

1. The "Inflection Point" Narrative is Real and Quantifiable
Investors often struggle to time the turnaround of cyclical companies. However, Jinbo is not just cycling; it is transforming. The data from 25H1 (48% Lithium, 26% Transport revenue) proves that the transformation is already underway. The market is still pricing in the 2024 losses, failing to adequately discount the 2026-2027 earnings power of the new segments. Buying now allows investors to capture the re-rating as quarterly reports progressively demonstrate the sustainability of the new revenue mix.

2. Asymmetric Risk/Reward Profile
* Downside Protection: The PV business, while depressed, provides a floor. The company has cleared its balance sheet impairments in 2024. The current Price-to-Book (P/B) ratio of 1.4x is reasonable for a tech-enabled manufacturer with strong IP.
* Upside Optionality: The carbon-ceramic brake market is virtually untapped in the mass-premium segment. If Jinbo captures even 10-15% of the projected 2026 market space (CNY 7-11 Billion), the revenue impact would be transformative. The current consensus estimates may still be conservative regarding the speed of OEM adoption.

3. Moat in Manufacturing Know-How
Carbon-ceramic brakes are not just about material science; they are about process engineering. The ability to produce these discs at scale with consistent quality and low cost is a formidable moat. Jinbo’s years of experience in CVD and carbonization give it a head start that competitors will find difficult to replicate quickly. This "manufacturing moat" ensures that even if competitors enter, Jinbo can maintain leadership through cost advantages and yield superiority.

4. Catalysts on the Horizon
* Q3/Q4 2025 Earnings: Expectations for a return to profitability in 2025E will serve as a immediate sentiment booster.
* New Model Launches: Announcements of additional mid-tier EV models adopting carbon-ceramic brakes (following Xiaomi’s lead) will validate the TAM expansion thesis.
* Capacity Milestones: Updates on the progress of the 4 million disc capacity facility will provide tangible evidence of growth readiness.

Strategic Recommendation for Institutional Investors

For institutional portfolios seeking exposure to the NEV supply chain beyond batteries and assembly, Jinbo Shares offers a differentiated play on material innovation. It is a hedge against the commoditization of traditional auto parts, offering exposure to a premium, high-margin niche that is becoming mainstream.

We recommend building a position gradually, monitoring the quarterly gross margin trends in the Transportation and Lithium segments as key confirmation indicators. The convergence of cost reduction, capacity expansion, and OEM adoption creates a rare "perfect storm" for growth in the advanced materials sector.

Appendix: Detailed Financial Data & Charts Analysis

(Note: The following section elaborates on the data provided in the original report, ensuring all core facts are preserved and contextualized.)

Chart Analysis & Market Context

Chart 1: China NEV Sales & Penetration
The report highlights that NEV penetration in China continues to rise. Our model assumes a 20% YoY growth in NEV sales for 2026, reaching 5.67 million units. This volume is the foundational driver for the brake and battery material businesses. The shift towards higher-priced NEVs (200k+) is particularly relevant for the brake business.

Chart 2: NEV Retail Share by Price Range
Data indicates a growing share of retail sales in the 200k-400k range. This "mass premium" segment is the sweet spot for Jinbo’s carbon-ceramic brakes. As competition intensifies in this segment, OEMs are seeking differentiation features. Carbon-ceramic brakes, once a CNY 100k option, are now a CNY 2k-4k option, making them a viable "premium feature" for marketing and performance enhancement.

Chart 3: Carbon-Ceramic Brake Preparation Process
The technical diagram underscores the complexity of the CVI + Resin Impregnation process. It involves:
1. Preform Preparation (Carbon Fiber weaving/stacking).
2. Densification (CVI/Resin).
3. High-Temperature Treatment (Graphitization).
4. Machining & Coating.
Jinbo’s optimization of steps 2 and 3 is the key to its cost advantage.

Chart 4: Price Band of Equipped Models
Historically, only cars >CNY 1 million featured these brakes. The chart shows a clear downward trend in the price of cars equipped with carbon-ceramic brakes, with recent models entering the 300k-500k range. This visual trend supports our thesis of market democratization.

Chart 5: Penetration Inflection Point
Similar to the adoption curve of LED headlights or panoramic sunroofs, carbon-ceramic brakes are moving from the "Innovators" phase to the "Early Adopters" phase. The inflection point is characterized by a steepening slope in penetration rates, which we project to occur in 2025-2026.

Chart 6: 2026 Market Space Calculation
(See Table in Section 2.D). This table is central to our bull case. Even under conservative penetration assumptions (1% for 200k-300k cars), the market is sizable. Under optimistic scenarios, it becomes a multi-billion yuan opportunity.

Charts 7-12: Company Financial Trends
* Revenue Mix (Charts 7 & 8): Visually confirms the shift away from PV dominance.
* Revenue & Profit (Charts 9 & 10): Shows the V-shaped recovery trajectory. The deep trough in 2024 is clearly visible, making the subsequent growth appear more dramatic but also grounded in a clean base.
* Margins (Chart 11): Gross margin volatility is evident, but the forecast shows a steady climb back to healthy levels (15-18%).
* R&D (Chart 12): Consistent high R&D spending despite profit pressures demonstrates management’s long-term orientation.

Balance Sheet Deep Dive

Assets:
* Fixed Assets: Increased significantly from CNY 2,008m (2023) to CNY 3,132m (2024), reflecting the heavy capex in new production lines. This asset base will generate the future revenue.
* Inventory: Managed down from CNY 300m (2024) to projected CNY 255m (2025E), indicating efficient destocking of old PV inventory.

Liabilities:
* Short-term Borrowings: Low at CNY 54m (2024), rising slightly to CNY 419m in 2026E to fund working capital for growth. This is a prudent use of leverage.
* Accounts Payable: Projected to increase to CNY 2,575m in 2027E, reflecting increased purchasing power and supply chain integration as production scales.

Equity:
* Retained Earnings: Took a hit in 2024 due to the loss, but projected to recover strongly to CNY 1,133m by 2027E, restoring shareholder value.

Cash Flow Dynamics

• Operating Cash Flow (OCF): The swing from CNY 198m (2024) to CNY 1,288m (2025E) is driven by the "Working Capital Change" line item (CNY 1,584m inflow). This suggests a significant release of cash trapped in receivables and inventory as the business mix shifts to faster-turnover products or as payment terms improve with new OEM customers.
• Investing Cash Flow: Consistently negative (outflows of CNY 800m-900m annually), confirming the aggressive expansion strategy.
• Financing Cash Flow: Mixed, with some debt issuance to support capex, but largely self-funded by operations in later years.

Conclusion on Financial Health

Jinbo Shares emerges from the 2024 crisis with a cleaner balance sheet (impairments taken), a diversified revenue stream, and a clear path to cash flow positivity. The financial risk is low, while the operational execution risk is the primary variable to monitor.

Final Remarks

Jinbo Shares represents a classic example of a successful industrial pivot. By leveraging its core competencies in carbon materials, it has escaped the gravity of the PV cycle and entered the high-orbit growth trajectories of the NEV and Energy Storage sectors.

For institutional investors, the key takeaway is that the market is still looking in the rearview mirror. The 2024 losses are historical artifacts. The 2026-2027 earnings power is the reality. With a forward P/E of 19x for 2027 and a dominant position in an emerging, high-barrier market, Jinbo Shares offers a compelling risk-adjusted return profile.

We reiterate our BUY rating.

Disclaimer:
This report is prepared by Aijian Securities Co., Ltd. for institutional clients only. The information contained herein is derived from sources believed to be reliable, but Aijian Securities does not guarantee its accuracy or completeness. The opinions expressed are those of the analysts as of the date of publication and are subject to change without notice. This report does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investors should conduct their own independent research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results.

Analyst Certification:
The analysts named in this report certify that all of the views expressed herein accurately reflect their personal views about the subject company and its securities. They also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Contact Information:
* Analyst: Wu Di (S0820525010001) | wudi@ajzq.com | +86-21-32229888-25523
* Contact: Xu Shujing (S0820124090004) | xushujing@ajzq.com | +86-21-32229888-25517
* Address: No. 5, Lane 199, Qiantan Avenue, Pudong New Area, Shanghai, 200126, China.