Kaiyuan Securities: Initiates Buy Rating on Xinde New Materials

Open Source Securities Co., Ltd. Yin Shenglu, Wang Jiayi recently conducted research on Xinde New Materials and released a research report titled “Company Information Update Report: Price Increases for Main and By-products Expected to Release Profit Flexibility,” giving Xinde New Materials a buy rating.

Xinde New Materials (301349)

Benefiting from strong downstream demand and rising crude oil prices, the prices of the company’s main and by-products are expected to increase significantly.

The company is a leading provider of lithium-ion battery anode coating materials. Its main products are anode coating materials and asphalt-based carbon fiber products, while its by-products include carbon black feedstock oil (rubber plasticizer) and pyrolysis naphtha distillate. Regarding the main products, due to increased sales volume and a higher proportion of medium-high and high softening point products, profitability had already improved by Q3 2025. With strong demand for lithium batteries and a balanced supply and demand for anode coating materials, the company’s product prices are expected to rise further. As for the by-products, since carbon black feedstock oil (rubber plasticizer) is a bulk product in the petrochemical downstream industry, its selling price follows market trends and is mainly influenced by upstream oil market fluctuations. Since 2026, oil prices have surged significantly. As of March 9, MICEX Brent crude oil approached $100 per barrel, with an increase of over 60% year-to-date. As of Q3 2025, the company’s Dalian base still held some inventory of by-products. Based on rising by-product prices, the company is expected to increase shipments of by-products, boosting profits. We have lowered the 2025 profit forecast to 43 million yuan (from 154 million yuan). Additionally, we forecast net profits attributable to the parent for 2026-2027 to be 370 million yuan and 496 million yuan, respectively. The current stock price corresponds to P/E ratios of 118.3x, 13.6x, and 10.2x. The price increases of main and by-products are expected to release profit potential, maintaining a “Buy” rating.

Leading anode coating material provider with integrated cost advantages

As of the end of October 2025, the company has established manufacturing bases in Dalian and Chengdu, forming a north-south layout with a total anode coating material capacity of 70,000 tons per year, with some flexibility. In Q3 2025, both bases increased capacity through technological upgrades. The Dalian base extends upstream to ethylene tar, providing integrated capacity advantages; Chengdu Yutai benefits from favorable cost and location advantages. In March 2026, the company acquired a 51% stake in Fujian Zhongtan through equity transfer and capital increase. Fujian Zhongtan has established an ethylene tar supply relationship with Fujian Gulei Petrochemical. This acquisition further reduces raw material transportation costs.

Risk warning: Rising raw material prices, profit levels below expectations.

Latest profit forecast details:

In the past 90 days, one institution has issued a rating for this stock, with a buy rating.

The above content is compiled by Securities Star based on public information, generated by AI algorithms (Wangxin Algorithm Backup 310104345710301240019), and does not constitute investment advice.