Key takeaway

The company achieved revenue of RMB1.152bn in 2025, up 21.84% YoY, and net profit attributable to shareholders of the parent company of RMB219mn, up 150.57% YoY; nickel powder gross margin was 37.54%, up 13.18 pcts YoY. Under the AI wave, demand for high-end MLCC grows rapidly, and the corresponding nickel powder of 120nm and below has high industry barriers; the company is a global leader, and capacity expansion and product mix optimization significantly enhance profitability. It is expected that in 2026, the industrialization of copper replacing silver in photovoltaics will be realized, and the company’s PVD-process copper powder has excellent performance; as the substitution of base metals in photovoltaics advances, photovoltaic copper powder is expected to become the second growth driver, lifting the company’s performance ceiling.

Event

Net profit attributable to the parent company rose 150.57% YoY in 2025.

JIANGSU BOQIAN NEW MATERIALS released its 2025 annual report, achieving revenue of RMB1.152bn in 2025, up 21.84% YoY; net profit attributable to shareholders of the parent company was RMB219mn, up 150.57% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB208mn, up 184.00% YoY. In 4Q25, revenue was RMB346mn, up 58.63% YoY, net profit attributable to shareholders of the parent company was RMB68mn, up 2720.45% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB66mn, up 1518.78% YoY.

Quick Take

Ultrafine nano nickel powder is a core material for high-end MLCC in AI servers, with both volume and price rising. Driven by the AI wave, higher requirements are placed on MLCC performance, size, capacitance, and stability, accelerating iteration toward ultra-thin dielectric layers and higher layer counts, with ultrafine nano nickel powder as the core material for performance upgrades. Samsung Electro-Mechanics data shows that the power consumption of AI servers is 5–10 times that of ordinary servers, and the MLCC usage can reach 28,000 units per server, 13 times that of ordinary servers, driving a surge in demand for nickel powder of 120nm and below.

Leading nano nickel powder player, product mix optimization and significant improvement in profi tability. The company is a global leader in nano nickel powder and one of the very few globally capable of mass productionof 120nm nickel powder and other small particle size high-end nickel powders, with 80nm nickel powder mass production reaching world-class levels, forming significant technical barriers and pricing power. In 2025, the company continued to optimize its product mix, with the share of fine particle size products increasing, driving a substantial rise in gross margin. In 2025, total nickel powder output across all specifications was 1,314.5 tons, with sales volume of 1,448.1 tons, representing YoY -7.07%/+1.90%, respectively; nickel powder revenue was RMB862mn, YoY +25.88%; average price per ton was RMB0.595mn/ton, YoY +23.53%; gross margin was 37.54%, up 13.18pcts YoY. The company’s overall gross margin was 32.64%, up 11.76pcts, and overall net margin was 19.03%, up 9.78pcts. Under the strategic agreement signed with a leading company (Company X), the estimated price corresponding to 5,420–6,495 tons of nickel powder supplied by Company X is RMB0.77–0.79mn/ton, indicating room for further improvement in the company’s future profitability.

Silver reduction and substitution in the photovoltaic sector drive massive market potential for coppe r powder business. The use of base metals such as copper to replace silver in the photovoltaic sector has become an industry consensus and a key direction of technological evolution, with rapid progress particularly in HJT and BC fields. The penetration rate of silver-coated copper electrodes in HJT has increased to about 86.5% and continues to evolve toward lower silver content solutions; TOPCon is still in the stage of “silver reduction + copper introduction validation,” with high-copper, low-silver paste as the main direction and no large-scale full substitution yet achieved; BC cells, leveraging their back-contact structure advantages, have entered a substantive industrialization stage of copper-centered base metal substitution. It is expected that in 2026, the application of copper replacing silver in photovoltaics will enter an accelerated expansion phase. The company ’s PVD-process copper powder features uniformly sized spherical particles, good dispersion, smooth and dense surfaces, and fewer defects; it is produced in a sealed ammonia environment without the use of reducing agents or additives, reducing oxidation sources and enhancing oxidation resistance, and is expected to become a new driver of profit growth in 2026.

Launch H-share listing preparation to accelerate international capital strategy. The company has initiated preparation for overseas share issuance (H shares) and listing on the Hong Kong Stock Exchange, aiming to accelerate overseas business development, build an international capital operation platform, optimize capital structure, expand diversified financing channels, and enhance overall competitiveness. This move is expected to further deepen its binding with samsung electro-mechanics, consolidate its position in the global supply chain, and further strengthen its global leadership position.

Earnings forecast and investment recommendation:AI demand is driving rapid growth in demand for fine nano nickel powder, the company’s newly built capacity is gradually being released, achieving both volume and price increases and opening up growth space for its core business; meanwhile, the copper powder business for photovoltaics continues to expand, and with the advancement of low-silver and silver-free trends, the company’ s copper powder business has broad future potential. assuming copper powder industrialization gradually materializes in 2026 and achieves 100gw-level BC cell substitution by 2028, we estimate the company’s revenue at RMB2.87bn/RMB4.62bn/RMB6.28bn in 2026–2028, and net profit attributable to shareholders of the parent company at RMB0.77bn/RMB1.43bn/RMB2.04bn, corresponding to PE of 39x/21x/15x, maintaining a "buy" rating.

Risks:1. the downstream sector of the company covers consumer electronics. if the downstream recovery is slower than expected and the mlcc consumption is weaker than expected, it will affect the company's performance; 2. the company's business is relatively concentrated in the top five customers. if the production and operation of the major customers fluctuate, it will affect the company's product shipments in the short term; 3. the company's raw materials include nickel, copper, silver and other metals, and the metal prices are linked to the global economic conditions, the fed's policies, and geopolitical factors. if the metal price fluctuates greatly, it may affect the company's raw material costs and thereby weighing on its gpm, affecting the company's performance; 4. the company’s newly built nano nickel powder production lines, silver-coated copper powder, nano-silicon powder and other products are all future growth drivers. if capacity construction or ramp-up is slower than expected, it will affect the company's performance.