Dongwu Securities: maintains a "buy" rating on Yewei Lithium Energy, with slightly better than expected Q1 results for the 26th year.

East Wu Securities research report pointed out that the performance of Yiwei Lithium Energy in Q1 of 2026 slightly exceeded market expectations. It is expected to achieve a net profit attributable to the parent of 13.8-14.9 billion yuan in Q1 of 2026, an increase of 25%-35% year-on-year, and an increase of 4%-13% quarter-on-quarter, with a median of 14.3 billion yuan. The company previously announced the expansion of production in Huizhou by 60GWh and in Jingmen by 60GWh. This time, it plans to build a new 50GWh capacity in Qiudong City, and establish a joint venture with Longjit Environmental Protection to build a 60GWh capacity in Shanghang County. The expansion of production capacity is further accelerating. Looking ahead, it is expected that the company's price transmission will basically land in the first half of the year, the profit of the midstream material joint venture company will continue to improve, and measures such as hedging with lithium carbonate futures will be used to further hedge the impact of raw material fluctuations. The profit per wh of battery can be maintained at 0.025 yuan for the whole year. Considering the company's high-speed shipment growth, a 30x valuation is given for 2026, with a target price of 103 yuan per share, maintaining a "buy" rating.