Dongwu Securities: Recommends a Buy rating for Tainai Technology

Everbright Securities Co., Ltd. Zeng Duohong and Ruan Qiaoyan recently conducted research on TianNai Technology and published the research report “2025 Performance Quick Report Review: Shipment Structure Continues to Optimize, 2026 Single-Wall Volume Confirmed,” giving TianNai Technology a buy rating.

TianNai Technology (688116)

Investment Highlights

Structural Adjustment, 2025 Q4 Performance Slightly Below Expectations: The company’s 2025 quick report shows revenue of 1.3 billion yuan, down 10.3% year-over-year; net profit attributable to parent of 240 million yuan, down 5.8%; non-recurring net profit of 200 million yuan, down 15.1%; Q4 revenue of 300 million yuan, down 26.9%/14.1% quarter-over-quarter/year-over-year; net profit attributable to parent of 40 million yuan, down 41.2%/50%; non-recurring net profit of 30 million yuan, down 54%/59%.

Multilayer Carbon Tubes: Q4 shipments declined quarter-over-quarter, structural optimization dragged on revenue; volume and price are stable in 2026. In 2025, shipments of multilayer products totaled about 71,000 tons, slightly down year-over-year, due to strategic product structure adjustments, with first-generation products accounting for 30%, down 13 percentage points YoY; Q4 multilayer carbon tube shipments were about 16,000 tons, down 11% quarter-over-quarter, due to proactive reduction of first-generation product shipments. On the profit side, Q4 gross margin was under pressure due to shipment decline and additional depreciation, R&D expenses, tax adjustments totaling over 20 million yuan, but per-ton profit remained stable. We expect shipments of multilayer products in 2026 to be 70,000–80,000 tons, with stable prices and profits at 2,500–3,000 yuan/ton, with the first, second, and third generations accounting for 25%, 35%, and 40%, respectively, as the structure continues to optimize.

Single-Wall Carbon Tubes: Volume increase certainty in 2026, performance contribution elasticity. In 2025, total shipments of single-wall products were about 4,300 tons, with about 1,700 tons shipped in Q4, slightly up quarter-over-quarter. In 2026, single-wall products will complete key customer validation in scenarios such as fast-charging anode and cathode for lithium iron phosphate, low-silicon anodes, and long-cycle energy storage, increasing demand certainty. We expect single-wall powder shipments of 80–100 tons in 2026, corresponding to slurry shipments of 30,000 tons, with Q1 2026 single-wall slurry production exceeding 3,000 tons, significantly higher than Q4 2025.

Profit Forecast and Investment Rating: Due to intensified industry competition, we revise the company’s net profit attributable to parent for 2025–2027 to 240 million, 530 million, and 750 million yuan (previous forecasts were 300 million, 710 million, and 1 billion yuan), representing YoY changes of -5.8%, +125.8%, and +41.4%. Corresponding P/E ratios are 74x, 33x, and 23x. Since 2026, the company’s multilayer carbon tube volume and price are stable, and single-wall volume growth is highly certain, so we maintain a “Buy” rating.

Risk Tips: Demand falls short of expectations, capacity expansion falls short of expectations, intensified competition.

Latest profit forecast details are as follows:

In the past 90 days, 2 institutions have issued buy ratings for this stock.

The above content is compiled from public information by Securities Star, generated by AI algorithm (Wangxin Algorithm Backup No. 310104345710301240019), and does not constitute investment advice.