Easpring Technology's Q1 shipments rose sharply quarter-on-quarter, and profit exceeded market expectations

Overview

This report is Soochow Securities' review of Easpring Technology's 2026 first-quarter report. The core conclusion is that the company's shipment volume rose sharply quarter-on-quarter in Q1 and profit exceeded market expectations, with growth driven by improved profitability in ternary cathode materials and LFP cathode materials, as well as continued volume expansion in solid-state lithium battery materials.

Core views

The company's 26Q1 revenue was 45.3 hundred million yuan, +137.2%/+52.1% YoY/QoQ; attributable net profit was 2.8 hundred million yuan, +150.3%/+113.7% YoY/QoQ; non-recurring adjusted net profit was 2.1 hundred million yuan, +221.4%/+89% YoY/QoQ. The ternary business benefited from export front-loading and volume ramp-up from major customers, while a higher share of international customers improved unit profitability; the LFP business saw strong shipment growth and benefited from inventory gains and price increases; lithium cobalt oxide benefited from rising cobalt prices and contributed stable profits; in solid-state lithium battery materials, the company has laid out sulfide, halide, oxide and other material systems, and related products have entered batch validation at leading customers.

Analysis framework

The report combines earnings decomposition, shipment and unit profitability estimates by business segment, capacity and customer mix analysis, financial forecasting, and relative valuation to assess the company's earnings elasticity and investment value.

Methodology notes

• Financial forecasting and valuationEarnings forecast and PE valuation

  Based on revenue, attributable net profit, EPS, and the current share price, estimate PE for future years and combine it with the rating judgment.

  The report forecasts attributable net profit of 11.3/14.5/17.5 hundred million yuan and EPS of 2.09/2.66/3.22 yuan for 2026-2028, corresponding to PE of about 29/23/19x.

• Operating decompositionShipment volume and per-ton profitability estimates by business segment

  Analyze shipments, customer mix, unit profitability, and capacity ramp-up separately for ternary, LFP, lithium cobalt oxide, and solid-state materials.

  The report attributes the Q1 profit beat to doubled ternary shipments, improved LFP profitability, stable profits from lithium cobalt oxide, and continued volume expansion in solid-state lithium battery materials.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Easpring Technology (300073.SZ)

  Research target

  Strengths

  Q1 earnings beat expectations, ternary and LFP shipments grew, unit profitability improved, and the company is ahead in solid-state lithium battery materials.

  Weaknesses

  Operating cash flow declined quarter-on-quarter, capital expenditure is relatively high, and inventory increased versus the start of the year.

  Comparison

  Compared with previous forecasts, Soochow Securities raised its 2026-2028 attributable net profit expectations, reflecting a more optimistic view on business volume expansion and profitability improvement.

  Risks

  Capacity release falls short of expectations; demand falls short of expectations.

• Lithium battery cathode material industry chain

  Related industry exposure

  Strengths

  Demand for ternary, LFP, lithium cobalt oxide, and solid-state battery materials provides multiple growth drivers.

  Weaknesses

  Industry demand, price fluctuations, and the pace of capacity additions can affect profit realization.

  Comparison

  The company covers ternary, LFP, and solid-state materials simultaneously, giving it a richer product mix than single-material companies.

  Risks

  A slowdown in downstream demand, lower-than-expected customer ramp-up, or price declines could weaken profit elasticity.

Key data

• 26Q1 revenue45.3 hundred million yuan+137.2% YoY, +52.1% QoQ.
• 26Q1 attributable net profit2.8 hundred million yuan+150.3% YoY, +113.7% QoQ.
• 26Q1 adjusted net profit excluding non-recurring items2.1 hundred million yuan+221.4% YoY, +89% QoQ.
• 26Q1 gross margin15.5%+4.5pct YoY, +2.9pct QoQ.
• 26Q1 ternary cathode shipmentsabout 2 ten-thousand tonsThe report expects shipments to double both YoY and QoQ, with full-year shipments expected at 8 ten-thousand tons.
• 2026 LFP shipment forecast15-18 ten-thousand tonsThe report expects YoY doubling.
• 2026-2028 attributable net profit forecast11.3/14.5/17.5 hundred million yuanThe previous forecast was 10.5/13.6/16.2 hundred million yuan.
• 2026-2028 PE29x/23x/19xBased on the report's current price and the latest diluted share capital basis.

Impact & implications

The report raises earnings forecasts and maintains a Buy rating, implying that the analyst sees improvement in both Easpring Technology's short-term earnings elasticity and medium-term growth. If ternary customer volume ramp-up, LFP capacity ramp-up, and solid-state material validation progress continue, the company's earnings recovery and growth trajectory in lithium battery cathode materials are expected to strengthen further.

Risks

• Capacity release falls short of expectations.
• Demand falls short of expectations.
• Higher capital expenditure and inventory growth may bring operating pressure.

What to watch

• Whether 26Q2 ternary cathode shipments can remain flat or increase slightly quarter-on-quarter.
• The ramp-up pace of international customers such as LGES and changes in the share of international customers.
• The ramp-up progress of Panzhihua's 12 ten-thousand ton LFP capacity and delivery against the full-year shipment target of 15-18 ten-thousand tons.
• Batch validation progress of solid electrolytes and dedicated cathode materials for all-solid-state batteries at leading customers.
• Changes in operating cash flow, capital expenditure, and inventory turnover.