Shanghai PRET Composites Co., Ltd Overview
Shanghai PRET Composites is one of China's leading independent compounders of modified engineering plastics for the automotive industry, a pioneer in liquid crystal polymer (LCP) materials, and — since its 2022 acquisition of Jiangsu Highstar (海四达电源) — a mid-tier lithium-ion and sodium-ion battery manufacturer. The company describes its model as "new materials + new energy" dual-engine growth. Its modified-materials business supplies polypropylene, ABS/PC alloys, polyamides and specialty polymers (PEEK, PPS, PPA, PPO) to BMW, Mercedes-Benz, Audi, VW, GM, Ford, BYD, Geely, Chery, Leapmotor, Seres, NIO, Li Auto and XPeng from 12 plants (four under construction) with 560,000 t/yr capacity, targeting 1 Mt long-term. Its ICT segment is described by the company as the world's only producer with full LCP resin-compound-film-fibre capability at scale. The battery arm (15.32 GWh lithium plus sodium capacity) serves power tools (TTI, Stanley Black & Decker, Bosch) and energy storage (State Grid, China Mobile, China Tower). FY2025 revenue was CNY 9.90 bn; net profit attributable CNY 367 m.
Company's own description (FY2025 Annual Report summary, published 24 April 2026)
The company states that it is principally engaged in the research, development, production, sale and service of polymer new materials and their composites, as well as lithium-ion batteries, sodium-ion batteries, solid-state batteries and system integration. Its business is organised into three directions: Modified Materials, ICT Materials and New Energy.
Modified Materials: general-purpose materials (modified PP, ABS, PS, PE), engineering materials (modified PA, PC/ABS, polyesters) and specialty engineering materials (modified PEEK, PPS, PPA, PPO), applied to automotive parts, electrical and electronic appliances, aerospace, two-wheelers, power and energy-storage systems, low-altitude aviation and robotics.
ICT Materials: built around the synthesis and application of liquid crystal polymer (LCP) — LCP resin, LCP compounds, LCP film and LCP fibre — used in high-frequency/high-speed connectors, cooling fans, electronic packaging (compounds), flexible printed circuit substrates and earphone diaphragms (film), and high-speed PCB substrates and cables/ropes (fibre).
New Energy: ternary (NCM) lithium-ion, lithium iron phosphate (LFP), sodium-ion and solid-state batteries and systems for power tools, smart home appliances, telecoms, energy storage, two-wheelers, low-altitude aviation, robotics, rail transit, aerospace, data centres, construction machinery and electric vessels.
Independent characterisation
PRET is best understood as a cyclical, spread-driven B2B materials converter bolted to a capital-intensive, low-margin battery manufacturer, with an option-value technology franchise (LCP) that is still small in revenue terms.
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Modified plastics (≈64–67% of revenue, the profit engine). PRET buys commodity and engineering resins (chiefly polypropylene, ABS, PC, PA) and compounds them with fillers, glass/carbon fibre, flame retardants, elastomers and additives into application-specific grades qualified by automotive OEMs and Tier-1s. Economics are a "processing spread": selling prices are negotiated with customers against resin-price trends, so profitability compresses when crude/petrochemical prices rise quickly (pass-through lags) and expands when they fall. This was explicitly the reason given for the H1 2026 profit collapse (H1 2026 Performance Forecast, July 2026). The moat is OEM qualification (multi-year material approvals by part number), colour-matching and low-VOC know-how, and a global plant network following Chinese OEMs abroad (Thailand, Mexico, US).
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Batteries (≈33% of FY2025 revenue, rising to ≈45% in H1 2026; marginal profit). Through Jiangsu Highstar (87.04% owned), PRET makes cylindrical cells (18650/21700/46-series, full-tab) for cordless power tools, garden tools, appliances and battery backup units (BBU), and prismatic LFP cells (100Ah, 314Ah, 392Ah) for stationary storage, plus sodium-ion cells (NFPP polyanion chemistry). Highstar lost CNY 54.5 m in FY2025 on revenue of CNY 3.29 bn (FY2025 guarantee notice), and battery gross margin was only 6.92% in H1 2026 (CICC, 2 Sep 2026).
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ICT/LCP (small, high-optionality). In 2025 PRET's LCP film entered volume supply for flexible-circuit antennas in a leading consumer-electronics customer's handsets — which the company calls a 0-to-1 domestic breakthrough — and LCP fibre entered a domestic low-earth-orbit satellite supply chain (flexible solar wings) in April 2025 (investor-relations record, 25 Dec 2025). Segment revenue is not separately disclosed in sources reviewed.
Revenue model
| Revenue model element | Assessment |
|---|---|
| Product sales | ≈100% of revenue; per-tonne (materials) and per-Wh/per-cell or per-system (batteries) |
| Services | Energy-storage EPC-like services (system design, installation, compliance, O&M) bundled with storage systems; not separately disclosed |
| Subscription / licensing | None disclosed |
| Pricing mechanism | Materials: cost-plus negotiated with customers referencing resin indices, with lag. Batteries: contract pricing referencing lithium carbonate and cell market prices |
Value-chain position and customers
| Segment | Upstream inputs | PRET position | Named customers (FY2025 AR summary) |
|---|---|---|---|
| Modified materials | PP, ABS, PC, PA, PEEK, PPS resins; glass/carbon fibre; additives | Compounder / Tier-2 material supplier | BMW, Mercedes-Benz, Audi, Volkswagen, GM, Ford, Chery, Geely, SAIC, Changan, Great Wall, JAC, BAIC; BYD, Leapmotor, Seres, GAC Aion, NIO, Li Auto, XPeng |
| ICT / LCP | LCP monomers | Integrated resin → compound → film → fibre | Leading domestic consumer-electronics OEM (unnamed); domestic LEO satellite maker (unnamed); overseas brain-computer-interface developer (co-development) |
| Batteries — small power | Cathode, anode, electrolyte, separator, cans | Cell maker | TTI, Stanley Black & Decker (百得), Bosch, CPI, Chervon (泉峰), Midea, Dreame (追觅), Positec (宝时得), SIM Battery, Cooper, Signify, BMZ |
| Batteries — storage | LFP cells | Cell + system integrator | State Grid, China Mobile, China Telecom, China Tower; Daqin, Deye, Eastman, Weimu, AR, Hunan Thermal Power Construction, Sunwoda, E2E, Guoxia (果下), Topband, Anker, Changyuan |
| Sodium-ion | Hard carbon, NFPP cathode | Cell/module maker via Guangdong Highstar Natrium (海四达钠星) | Overseas customer (≥1 GWh module order); China Southern Power Grid Technology (30 MWh system) |
Strategy
Stated strategy (FY2025 AR summary and 2026 budget, Apr 2026)
The company frames its strategy around a "new materials + new energy" dual-wheel drive, with segment priorities set out in its 2026 financial budget:
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Automotive materials: deepen OEM relationships, accelerate new-material development, raise the share of NEV business, and expand non-automotive markets so as to deliver "stable development" despite oil-price volatility.
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ICT: strategically position LCP in 6G, consumer electronics, AI servers, brain-computer interfaces and LEO satellites; broaden LCP film usage in handsets; speed BCI and PCB customer validations.
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New energy: focus on three technology directions — large cylindrical/full-tab, semi-solid-state, and large-capacity prismatic cells — to create "hit products".
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Sodium-ion: concentrate on the polyanion (NFPP) route under three themes — technology leadership, capacity expansion and market breakthrough.
Initiatives in the last 24 months
| Date | Initiative | Scale / target | Status |
|---|---|---|---|
| Feb 2025 | Malaysia 2.5 GWh cylindrical base | CNY 750 m | Producing since end-Mar 2026 |
| Q1 2025 | Zhuhai 6 GWh base completed; 314Ah semi-solid launch | — | Operating |
| Jun 2025 | Guangdong PRET (Nansha) 400 kt/yr compounding project | CNY 800 m project loan guaranteed (10-year) | Under construction |
| 2,025 | Spin-out of sodium business into Guangdong Highstar Natrium with >CNY 100 m strategic financing | — | Completed |
| Sep 2025 | Neijiang 6 GWh sodium base | CNY 800 m (phase 1 CNY 300 m, 2 GWh); local guidance fund CNY 98 m | Production expected from H2 2026 |
| Dec 2025 | Highstar Natrium further capital increase from Yangzhou Xingjian and Guangzhou Baiyun funds | — | Completed |
| 2025–26 | Tianjin materials plant | Part of 1 Mt target | Under construction |
| 2025–26 | Robotics/low-altitude materials (PEEK, PPS, PA, TPE, carbon-fibre PC) | Small-batch supply | Ongoing validation |
| Apr 2026 | Sale-and-leaseback financing at Highstar | ≤ CNY 200 m, ≤1 year | Authorised |
| Apr 2026 | FX forward hedging programme | ≤ USD 20 m | Authorised |
| Jul 2026 | Qidong large prismatic line upgrade | CNY 500 m; +6 GWh (85–392Ah cells) by Jun 2027 | Started Jul 2026 |
Medium-term targets / guidance
Materials capacity: 1 Mt/yr long-term (from 560 kt).
Battery capacity: 15.32 GWh lithium + 2.5 GWh Malaysia + 6 GWh prismatic upgrade + 6 GWh sodium (Neijiang) → ≈30 GWh by 2027 if all executed (analyst aggregation).
Financial targets: no quantitative revenue/profit guidance published beyond the H1 2026 statement that H1 revenue would grow >30% (H1 2026 forecast).
ESG targets: none quantified in sources reviewed.
Products & Services
Modified Materials
| Product line | Description / key capabilities | Target customer & application | Status |
|---|---|---|---|
| Modified PP | Talc/glass-filled, impact-modified PP; low-VOC, scratch-resistant | Bumpers, dashboards, door panels, interior trims | Core volume product |
| Modified ABS / PC & PC/ABS alloys | Plating-grade, weather-resistant, low-gloss alloys | Interior/exterior trims, lighting housings, electronics | Core |
| Modified PS / PE | General-purpose compounds | Appliances, packaging-adjacent | Core |
| Modified PA (PA6/PA66) | Glass-fibre reinforced, heat-stabilised, flame-retardant | Engine-bay parts, connectors, EV "three-electric" (battery, motor, e-control) components | Core |
| Modified polyesters (PBT/PET) | Reinforced, flame-retardant | Electrical connectors, sensors | Core |
| Specialty engineering: modified PEEK, PPS, PPA, PPO | High-heat, high-strength, chemical resistance | Humanoid robots (metal replacement), EV battery systems, aerospace | Small-batch supply to robot/low-altitude customers (FY2025 AR) |
| Carbon-fibre reinforced series; PC alloys for aviation | Lightweighting | Low-altitude aircraft (eVTOL) components | Validation / small batches |
| TPE (thermoplastic elastomers) | Soft-touch, sealing | Automotive interiors, robots | Listed in recruitment brochure |
| Colour masterbatch | Pre-coloured concentrates | Automotive, appliances | Listed in recruitment brochure |
| Flame-retardant materials | Halogen-free FR grades | Energy-storage enclosures, appliances, power tools | Non-auto growth +132% FY2025 |
| Light stabilisers / polymer additives | Via Suqian Zhenxing Chemical (2020) | Internal use and third-party sale | Disclosed in FY2020 AR summary |
Pricing model: per-tonne, negotiated against resin-price movements. Capacity: 560 kt/yr in place; 1 Mt/yr long-term target (FY2025 AR summary).
ICT Materials (LCP)
| Product | Capacity | Specification / application | Commercial status |
|---|---|---|---|
| LCP resin (Type I and Type II; injection, film and fibre grades) | 4,000 t/yr polymerisation | Full grade coverage | Commercial |
| LCP compounds (blend-modified) | 5,000 t/yr | High-frequency/high-speed connectors, cooling fans, electronic packaging | Commercial |
| LCP film | 3 million m²/yr | Flexible printed circuit (FPC) substrate, handset soft-board antennas, earphone diaphragms; brain-computer interface electrodes (co-development) | Volume supply to a leading handset OEM began 2025 |
| LCP fibre (1000D) | 1,000 t/yr | Core layer of satellite flexible solar wings (≈CNY 5,000 of fibre per satellite wing); high-speed PCB rigid boards for 6G base stations and AI servers; cables/ropes | Satellite supply since Apr 2025; PCB validation ongoing |
IP: 17 granted invention patents, 14 pending, plus a US PCT patent covering synthesis, modification, film and fibre (FY2025 AR summary).
New Energy (Jiangsu Highstar)
| Product family | Key specification (FY2025 AR summary) | Target use | Customers |
|---|---|---|---|
| 18-series cylindrical (e.g. ISR18650-2500) | Stable 3.5Ah production in 18-series; ISR18650-2500 certified by TTI and Stanley Black & Decker (Feb 2025) | Power tools, garden tools | TTI, SBD, Bosch, Chervon, Positec |
| 21-series cylindrical | Capacity above 5.8Ah | Power tools, appliances | As above; Midea, Dreame |
| Power-type / multi-tab / full-tab cylindrical | 15-minute fast charge to 90% SOC; full-tab in mass production | High-end tools, BBU (data-centre battery backup) | Tool OEMs, BBU integrators |
| 46-series large cylindrical (lithium and sodium) | Large-format | Tools, starting batteries, storage | In ramp |
| Prismatic LFP storage cells — 85Ah, 100Ah, 120Ah, 314Ah, 392Ah | Aluminium-can prismatic; 314Ah semi-solid-state variant from Zhuhai | Grid peak-shaving, C&I, residential, AIDC (AI data-centre) storage | State Grid, telecom operators, Deye, Anker, Sunwoda, etc. |
| Storage systems | Outdoor PV storage, lead-acid replacement, telecom backup, residential, C&I, containerised utility-scale | Turnkey incl. design, installation, compliance, O&M | As listed in §2.4 |
| Sodium-ion cells — 46145-15Ah, 71173208-160Ah | NFPP polyanion chemistry; −20°C to 80°C operation; certified UL/TÜV/IEC | Storage, backup power, automotive start-stop, special vehicles, data centres | Overseas ≥1 GWh module order; CSG Technology 30 MWh; Shanghai Pingye ≥1.5 GWh (forklifts) |
| NFPP start-stop battery (new generation) | Validated over "hundreds of thousands of km" | ICE/NEV 12V start-stop | Imminent launch per FY2025 AR |
| Semi-solid / solid-state | 314Ah semi-solid first line-off 2025 | Storage | Early commercial |
| Legacy NiCd / NiMH | Highstar heritage product lines | Industrial | Legacy (per Highstar history) |
Company states its sodium-ion shipments ranked second globally in 2025 (FY2025 AR summary; company claim).
Financial Narrative
All figures CNY million unless stated; fiscal years ended 31 December. Primary sources: annual report summaries (FY2022, FY2025), FY2024 performance flash, cfi.cn financial indicator tables (extracted from filings), Caixin (FY2022).
Income statement
Notes: FY2021 attributable profit derived from Caixin's +931.1% FY2022 growth. FY2024 attributable profit derived from FY2025's +160.36% growth (CNY 367.48 m ÷ 2.6036). FY2024 EPS derived (≈141.1 m ÷ ≈1.10 bn weighted shares). FY2023 DPS implied: 2023–2025 cumulative cash distributions CNY 192.33 m less FY2025 CNY 60.35 m and FY2024 CNY 54.86 m = CNY 77.11 m; Chinese rules count cash buybacks within this total, so the per-share dividend may differ.
Margins
Revenue CAGR FY2021–FY2025: ≈19.4% (derived; ≈14.4% excluding the inorganic Highstar step-up is not separately computable from disclosures).
Quarterly profile — FY2025 and FY2026 YTD
Derived from cumulative figures (cfi.cn; Jiemian for Q1 2025; CICC for Q2 2026).
Balance sheet
Contextual indicators: the board approved bank credit lines of up to CNY 11.02 bn for 2026; actual outstanding guarantees to subsidiaries were CNY 1,827.8 m (39.4% of attributable equity) at April 2026 (FY2025 guarantee notice). FY2022 liabilities derived from Caixin's 63.9% liability ratio.
Interim balance sheet (30 Jun 2026): total assets CNY 13,524.6 m; total liabilities CNY 8,607.6 m (63.6%); attributable equity CNY 4,648.7 m; cash equivalents CNY 502.7 m (cfi.cn).
Cash flow
Capex proxy uses total investing outflows (includes wealth-management purchases), so FCF is approximate. FY2023 financing inflow includes the private placement. H1 2026 OCF was CNY −191.8 m (Q1 −213.5 m) as working capital absorbed battery growth and resin inflation (cfi.cn).
Buybacks: a CNY 75–150 m programme (2021) repurchased 6.04 m shares for CNY 75.1 m by 30 Jun 2021; 15.07 m treasury shares were held at April 2026.
Ratios
ROIC, current ratio, debt/equity, net debt/EBITDA, interest coverage and cash conversion cycle: not computable from retrieved data (require debt, D&A, interest and working-capital line items from the full annual report).
Commentary on trends, inflections and drivers
FY2021 — the trough. Crude-led resin inflation and a Q3 2021 automotive production dip (chip shortage) collapsed the processing spread; attributable profit fell to ≈CNY 21 m from CNY 483 m-equivalent the prior year (inflated by meltblown PP). This established the pattern that recurs throughout: PRET's materials margins are hostage to the speed of petrochemical price moves.
FY2022 — inorganic step-change. Revenue jumped 38.8% to CNY 6.76 bn as Highstar was consolidated from September 2022 and resin prices eased in H2. Total assets nearly doubled to CNY 8.61 bn.
FY2023 — peak. A full year of Highstar, strong NEV-led auto materials demand and benign resin costs delivered record attributable profit of CNY 468 m (EPS 0.45). The CNY ~1 bn private placement lifted equity to CNY 4.32 bn, but heavy battery capex (investing outflows CNY 1.35 bn) turned FCF negative.
FY2024 — battery hangover. Lithium-cell price deflation and industry overcapacity cut attributable profit 69.9% to CNY 141 m despite modified-plastics margins improving (general materials GM 16.1%). Revenue fell 4.5%, the only decline in the period.
FY2025 — materials-led recovery. Revenue +19.1% and profit +160.4%. The driver was modified materials (full-capacity utilisation, overseas plants ramping, general materials GM 18.6%) and storage-cell volume (+222.5%). Battery profitability remained thin (Highstar net loss CNY 54.5 m). OCF of CNY 1.14 bn was strong and allowed net financing outflow of CNY 510 m. A CNY 53.4 m asset impairment was booked.
H1 2026 — another spread squeeze. A sharp crude spike linked to geopolitical events cut modified-plastics GM by 3.73ppt to 13.69%; batteries grew 143% but at 6.92% GM. Attributable profit fell 59.6% to CNY 84 m while revenue rose 37.6%. Management expects H2 relief as feedstock prices retreat and price pass-through catches up (H1 2026 forecast).
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View Subscription PlansFinancial Detail
Revenue by Segment (CNY)
| Segment / product line (CNY 100m) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
General modified materials | 33.48 | 38.00 | 39.15 |
Engineering modified materials | — | 16.30 | — |
New-energy batteries (total) | — | 19.86 | 32.88 |
of which LFP / energy-storage batteries | — | 7.39 | 23.83 |
Group revenue | 87.09 | 83.14 | 98.99 |
Product line gross margin (%)
| Product line gross margin (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
General modified materials | 14.65 | 16.11 | 18.63 |
LFP lithium-ion batteries | — | — | 2.67 |
Group gross margin | 16.50 | — | 13.97 |
Revenue by Segment (CNY) and Segment Margins & Growth (%)
| H1 segment data | H1 2025 | H1 2026 |
|---|---|---|
Modified plastics revenue (CNY 100m) | 30.40 | 30.76 |
Modified plastics gross margin (%) | 17.42 | 13.69 |
New-energy battery revenue (CNY 100m) | 10.50 | 25.51 |
New-energy battery gross margin (%) | 8.01 | 6.92 |
Group Entities
| Subsidiary | Ownership | Function | FY2025 revenue | FY2025 net profit | Leverage |
|---|---|---|---|---|---|
Zhejiang PRET New Materials (Jiaxing) | 100% | Compounding — largest plant | CNY 4,284.6 m | CNY 88.3 m | Liabilities/assets 27.7% |
Chongqing PRET New Materials | 100% | Compounding (SW China) | CNY 795.9 m | CNY 5.7 m | 40.0% |
WPR Holdings LLC (South Carolina, US) | 100% (indirect) | US compounding | USD 83.6 m | USD 5.09 m | 40.0% |
Guangdong PRET New Materials (Nansha) | 100% | 400 kt/yr project under construction | nil | CNY −4.9 m | 41.9% |
Zhejiang Yanhua Supply Chain | 55% | Raw-material trading | CNY 609.1 m | CNY −11.6 m | 82.4% |
Jiangsu Highstar Power (海四达电源) | 87.04% | Battery holding / cylindrical cells | CNY 3,287.9 m | CNY −54.5 m | 75.6% |
Jiangsu Highstar Power Technology | 100% of Highstar | Power cells | CNY 586.4 m | CNY 2.3 m | 58.6% |
Jiangsu Highstar Energy Storage Technology | 100% of Highstar | Prismatic storage cells (Qidong) | CNY 1,044.7 m | CNY 6.3 m | 60.5% |
Guangdong Highstar New Energy (Zhuhai) | 100% of Highstar | 6 GWh storage base | CNY 873.2 m | CNY 8.3 m | 79.0% |
Highstar Smart Energy (Jiangsu) | 100% of Highstar | Storage systems / EPC | CNY 78.7 m | CNY −12.0 m | 73.1% |
Highstar Energy Malaysia Sdn Bhd | 100% of Highstar | 2.5 GWh cylindrical (Johor) | nil (pre-production) | MYR −2.29 m | 28.4% |
Guangdong Highstar Natrium (海四达钠星) | Controlling (diluted Dec 2025) | Sodium-ion; Neijiang 6 GWh | — | — | — |
“—” = not publicly disclosed.
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 4,870.8 | 6,758.5 | 8,709.4 | 8,313.5 | 9,899.1 |
Revenue growth (%) | 9.5 | 38.8 | 28.9 | -4.5 | 19.1 |
Cost of sales (CNY Mn) | — | — | 7,272.4 | — | 8,515.9 |
Gross profit (CNY Mn) | — | — | 1,437.0 | — | 1,383.2 |
Operating profit (CNY Mn) | — | — | 496.1 | 143.3 | 348.0 |
Pre-tax profit (CNY Mn) | — | — | 496.2 | 135.5 | 381.6 |
Net profit incl. minorities (CNY Mn) | — | — | 478.6 | — | 361.7 |
Net profit attributable (CNY Mn) | 21.0 | 216.6 | 468.4 | 141.1 | 367.5 |
Recurring net profit attributable (CNY Mn) | — | — | 433.0 | — | 326.9 |
EPS basic (CNY) | — | — | 0.45 | 0.13 | 0.33 |
EPS diluted (CNY) | — | — | 0.45 | — | 0.33 |
Cash DPS (CNY) | — | 0.050 | 0.070 | 0.050 | 0.055 |
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View Subscription PlansMargin (%)
| Margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | — | — | 16.50 | — | 13.97 |
Operating margin | — | — | 5.70 | 1.72 | 3.52 |
Pre-tax margin | — | — | 5.70 | 1.63 | 3.85 |
Net margin (attributable) | 0.43 | 3.20 | 5.38 | 1.70 | 3.71 |
Income Statement
| Quarterly metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
Revenue (CNY Mn) | 1,934.0 | 2,155.8 | 2,697.6 | 3,111.7 | 2,540.9 | 3,086.0 |
Net profit attributable (CNY Mn) | 109.0 | 98.3 | 117.8 | 42.4 | 47.6 | 36.1 |
Balance Sheet and Margin Analysis (%)
| Balance sheet item | FY2021 | FY2022 | FY2023 | FY2025 |
|---|---|---|---|---|
Total assets (CNY Mn) | 4,617.3 | 8,608.3 | 11,907.2 | 12,833.2 |
Total liabilities (CNY Mn) | — | 5,500.7 | 7,265.8 | 7,966.7 |
Equity attributable (CNY Mn) | 2,603.8 | 2,839.2 | 4,316.2 | 4,638.9 |
Total equity incl. minorities (CNY Mn) | — | — | 4,641.5 | 4,866.4 |
Cash & cash equivalents, year-end (CNY Mn) | — | — | 828.4 | 601.3 |
Liabilities-to-assets ratio (%) | — | 63.9 | 61.0 | 62.1 |
Share capital (M shares) | — | 1,017.4 | 1,114.1 | 1,112.3 |
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View Subscription PlansCash flow item
| Cash flow item | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Operating cash flow (CNY Mn) | — | 835.7 | — | 1,137.7 |
Investing cash flow (CNY Mn) | — | -1,326.2 | — | -695.3 |
Investing outflows — capex proxy (CNY Mn) | — | 1,346.6 | — | 854.6 |
Free cash flow proxy (CNY Mn) | — | -510.9 | — | 283.1 |
Financing cash flow (CNY Mn) | — | 1,121.6 | — | -509.8 |
Dividends declared for the year (CNY Mn) | 50.9 | 77.1 | 54.9 | 60.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2025 |
|---|---|---|---|---|
ROE on year-end attributable equity (%) | 0.8 | 7.6 | 10.9 | 7.9 |
ROA (%) | 0.5 | 2.5 | 3.9 | 2.9 |
Asset turnover (x) | 1.05 | 0.79 | 0.73 | 0.77 |
OCF / net profit attributable (x) | — | — | 1.78 | 3.10 |
Overseas Proxy Details
| Overseas proxy | FY2025 |
|---|---|
WPR Holdings (US) revenue (USD Mn) | 83.6 |
WPR Holdings (US) revenue (CNY Mn, at 7.1086) | 594.5 |
WPR share of group revenue (%) | 6.0 |
Malaysia battery plant revenue (CNY Mn) | 0 |
Geographic revenue (CNY Mn) | FY2023 |
Share Price History
| Date | Close / implied price (CNY) | Source |
|---|---|---|
31 Jul 2020 | 16.42 | Everbright Securities |
30 Jun 2025 | 10.63 | Jiemian |
26 Jan 2026 | 18.91 | Securities Times |
c.1 Sep 2026 | ≈9.33 (implied) | CICC (TP 11.3 = 21.1% upside) |
Share price performance | Value | — |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
Market cap (CNY Mn) | ≈10,380 | 1,112.3 m shares |
P/E FY2025 (x) | ≈28.3 | NP CNY 367.5 m |
P/E 2026E (x) | ≈53.0 | CICC NP CNY 196 m |
P/E 2027E (x) | ≈28.9 | CICC NP CNY 359 m |
P/B FY2025 (x) | ≈2.2 | Attributable equity CNY 4,639 m |
P/S FY2025 (x) | ≈1.05 | Revenue CNY 9,899 m |
EV/EBITDA, EV/Sales | Not computable | — |
Analyst Ratings & Targets
| Broker | Date | Rating | Target (CNY) | Key view |
|---|---|---|---|---|
CICC (Xu Xiaotian, Fu Kaiming, Yan Beina, Qiu Xiaofeng) | 2 Sep 2026 | Outperform (maintained) | 11.3 (cut 42.6%) | H1 below expectations; 2026E NP CNY 196 m, 2027E CNY 359 m; 35.1x 2027E P/E |
Dividend metric
| Dividend metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Cash DPS (CNY) | 0.050 | 0.070 | 0.050 | 0.055 |
Total cash distribution (CNY Mn) | 50.9 | 77.1 | 54.9 | 60.3 |
Payout ratio (%) | 23.5 | 16.5 | 38.9 | 16.4 |
Analyst Conclusions
Guidance and expectations
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Management guided H1 2026 revenue growth above 30% (delivered: +37.6%) and expects raw-material cost pressure to ease in H2 2026 as feedstock prices fall, supported by cost reduction and new-capacity ramp-up (H1 2026 forecast).
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CICC's revised forecasts: 2026E attributable NP CNY 196 m (−47% YoY), 2027E CNY 359 m (≈ back to FY2025 level).
Bull case
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Materials margin mean-reversion: if resin prices normalise, general modified materials margins can return toward the 18.6% of FY2025, restoring ≈CNY 300–400 m profit run-rate on a larger capacity base (560 kt → 1 Mt).
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Battery operating leverage: battery revenue already exceeded CNY 2.5 bn in H1 2026; the company says the new-energy segment turned profitable; every 1ppt of battery GM on a ≈CNY 5 bn run-rate adds ≈CNY 50 m gross profit.
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LCP and sodium as re-rating catalysts: handset LCP film volume supply, satellite fibre and a #2 global sodium position offer scarce-asset narratives in the A-share market.
Bear case
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Structural margin dilution: batteries (2.7–6.9% GM) are becoming half of revenue, dragging group GM from 16.5% (FY2023) toward ≈11% (H1 2026 implied), with ROE stuck below 10%.
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Balance-sheet strain: ≈CNY 2.85 bn in announced projects, liabilities at 63.6% of assets and negative H1 2026 OCF raise refinancing and equity-dilution risk.
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Repeated cyclicality: three profit collapses in eight years (2018, 2021, 2024) plus H1 2026 show the business has not escaped commodity-spread risk; diversification has added lithium-price risk rather than smoothing earnings.
Catalysts and monitorables (next 12 months)
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Q3 2026 report (late Oct 2026): modified-plastics margin recovery vs. 13.69% H1 level.
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Neijiang sodium phase 1 start-up (H2 2026) and Highstar Natrium order intake.
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Qidong 6 GWh prismatic upgrade progress (target Jun 2027).
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Nansha, Tianjin and Poland plant milestones.
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LCP film share in next-generation handsets; LCP fibre PCB qualification for AI servers.
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Highstar profitability (FY2025 −CNY 54.5 m) and any goodwill impairment.
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Controller pledge rollovers (Jun 2026 maturity) and any equity raise.
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Crude oil and lithium carbonate price paths.
Analyst verdict
Shanghai PRET Composites is a competent, well-qualified automotive compounder that has deliberately turned itself into a hybrid materials-and-batteries company. The record since the 2022 Highstar acquisition is mixed. Scale has improved markedly — revenue roughly doubled from CNY 4.87 bn in FY2021 to CNY 9.90 bn in FY2025, and H1 2026 is running at an annualised CNY 11 bn+ — but quality of earnings has not. Group gross margin has drifted down as batteries grew, the battery subsidiary remains loss-making at the net level, and the H1 2026 result showed that the original commodity-spread vulnerability in modified plastics has not gone away.
The core materials franchise deserves a premium to generic compounders: blue-chip OEM approvals, full utilisation in FY2025, a global footprint that follows Chinese OEMs abroad, and an LCP chain that is genuinely differentiated in China. These assets underpin a through-cycle earning power of perhaps CNY 300–450 m in a normal resin environment, but that figure is an analyst judgement, not company guidance.
The battery strategy is the swing factor. Sodium-ion leadership and tool-cell relationships are real options, yet PRET is committing roughly CNY 2–3 bn of new capex into a storage market defined by overcapacity and price competition, while carrying a 62–64% liability ratio and negative interim operating cash flow. Investors are effectively paying ≈28x trailing and ≈53x 2026E earnings (CICC basis) for a recovery that depends on resin prices normalising and storage margins improving simultaneously.
Verdict: a fundamentally sound materials business with high-beta optionality. Near-term, evidence of H2 2026 margin repair and disciplined capex is required before the risk/reward becomes compelling; balance-sheet and governance (pledge) monitoring should remain front-of-mind.
SOURCES (primary and secondary documents consulted)
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FY2025 Annual Report Summary, board resolutions 2026-014 to 2026-021, guarantee and dividend notices — Shanghai Securities News, 24 Apr 2026: https://paper.cnstock.com/html/2026-04/24/content_2204605.htm
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Securities Times — FY2025 results article, 23 Apr 2026: https://stcn.com/article/detail/3792435.html
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Securities Times — FY2025 profit forecast, 26 Jan 2026: https://stcn.com/article/detail/3612793.html
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10jqka — FY2025 profit forecast: https://stock.10jqka.com.cn/20260126/c674309112.shtml
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CICC note "Raw material inflation weighs on near-term results", 2 Sep 2026 (via Gelonghui): https://m.gelonghui.com/news/5305101
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Gelonghui — H1 2026 forecast commentary: https://m.gelonghui.com/news/5268386
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cfi.cn financial indicators (FY2023, FY2025, 2026 interim): https://quote.cfi.cn/cwfxzb/10676/002324.html
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FY2024 Performance Flash (2025-013), cninfo: https://static.cninfo.com.cn/finalpage/2025-04-09/1223030949.PDF
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Q1 2025 Performance Forecast (2025-014), cninfo: https://static.cninfo.com.cn/finalpage/2025-04-09/1223030947.PDF
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FY2024 Annual Report and Summary, cninfo: https://static.cninfo.com.cn/finalpage/2025-04-19/1223153726.PDF ; https://static.cninfo.com.cn/finalpage/2025-04-19/1223153687.PDF
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FY2022 Annual Report Summary (2023-035), SZSE: https://disc.static.szse.cn/disc/disk03/finalpage/2023-04-19/f63ddd0b-9335-41a4-8731-2ac24043d1d3.PDF
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FY2020 Annual Report Summary, SZSE: https://disc.static.szse.cn/disc/disk02/finalpage/2021-04-10/c49cc40e-418e-4ced-8c4f-c552b778a2a5.PDF
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Caixin Global — FY2022 results, 21 Apr 2023: https://www.caixinglobal.com/2023-04-21/shanghai-pret-composites-coltds-net-profit-rose-9311-in-2022-102036982.html
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9M 2022 Performance Forecast (Highstar consolidation): https://disc.static.szse.cn/disc/disk03/finalpage/2022-10-12/370c1c21-136f-42a3-a68d-62684e7843dc.PDF
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9M 2021 Performance Forecast: https://disc.static.szse.cn/disc/disk02/finalpage/2021-10-15/670013d9-789a-440f-b12e-8346bba859eb.PDF
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H1 2021, H1 2023 reports/summaries (pret.com.cn): https://pret.com.cn/uploads/soft/dqbg/24.PDF ; https://pret.com.cn/uploads/soft/zxgg/2980.PDF ; https://pret.com.cn/uploads/soft/zxgg/2975.PDF
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Dilution notice 2023-082 (private placement): https://pret.com.cn/uploads/soft/zxgg/2960.PDF
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Controller pledge notice 2025-038: https://static.cninfo.com.cn/finalpage/2025-06-14/1223877199.PDF
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Neijiang sodium base notice 2025-058: https://paper.cnstock.com/html/2025-09/30/content_2127804.htm ; https://m.gelonghui.com/news/5091312
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Sodium storage contract notice 2025-044: https://paper.cnstock.com/html/2025-07/09/content_2090716.htm
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Highstar Natrium capital increase, 4 Dec 2025: https://m.gelonghui.com/news/5129359
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Malaysia 2.5 GWh investment (Jiwei/Solarbe), 20 Feb 2025: https://mcn.solarbe.com/news/20250220/50000566.html
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Qidong 6 GWh prismatic upgrade, 29 Jul 2026: https://finance.eastmoney.com/a/202607293825225687.html ; https://www.caiwennews.com/article/1535105.shtml
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IR activity records, 5 Mar 2025 and 25 Dec 2025 (cninfo): https://static.cninfo.com.cn/finalpage/2025-03-05/1222721435.PDF ; https://static.cninfo.com.cn/finalpage/2025-12-25/1224898825.PDF
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CLS — 1.5 GWh sodium order, 12 May 2024: https://www.cls.cn/detail/1674005
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NetEase/163 — FY2025 battery segment analysis: https://m.163.com/dy/article/L3LQDJLA0519B826.html
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ITBear — H1 2026 and history analysis, 7 Aug 2026: https://www.itbear.com.cn/html/2026-08/1485391.html
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Jiemian — Q1 2025 results and market cap: https://m.jiemian.com/article/12972776.html
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Lixinger — revenue composition and executive data: https://www.lixinger.com/equity/company/detail/sz/002324/2324/operation-revenue-constitution
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Everbright Securities note, 2 Aug 2020: https://img3.gelonghui.com/pdf/dc6eb-83d00884-45b4-4e39-9553-d3714cd4baca.pdf
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PRET 2025 campus recruitment brochure (company history): https://career.hebut.edu.cn/Upload/file/20240820/1724134185673576.pdf
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Background (where disclosed) | Compensation |
|---|---|---|---|
Zhou Wen (周文) | Chairman; controlling shareholder and actual controller; legal representative of WPR Holdings and Zhejiang Yanhua | Founder-era leader; signatory as "company principal" in all annual reports | — |
Zhou Zhenlun (周臻纶) | Director, Vice President, Chief Financial Officer | Born 1993; BS Operations Research, Columbia University; former analyst at J.P. Morgan Chase; assistant GM at Shenzhen Huaxia Jishi Think Tank; joined Feb 2020 as Assistant to Chairman, GM of PRET Science Park, deputy GM of Electronic Materials Group | CNY 1.096 m (FY2024) |
Cai Qing (蔡青) | Board Secretary | — | — |
Chen Gang (陈刚) | Director and legal representative of Jiangsu Highstar and its subsidiaries | Highstar management | — |
Zhou Jiecheng (周皆成) | Legal representative, Highstar Energy Malaysia | — | — |
Shen Yihao (沈奕豪) | Head of accounting department (FY2024 AR) | — | — |
Qian Junlü (钱君律) | Independent Director | — | CNY 120k p.a. allowance (2026 plan) |
Tang Yunwei (汤云为) | Independent Director | — | CNY 120k p.a. |
Shao Wanquan (邵万权) | Independent Director | — | CNY 120k p.a. |
Hu Bing (胡冰) | Former Independent Director (left during 2025) | Lawyer; LLM Fudan; former legal head at AB InBev | CNY 111.7k (FY2024) |
Zhao Shijun (赵世君) | Former Independent Director (left during 2025) | — | — |
Zhou Wu (周武) | Former director/executive (sold shares Aug 2022) | — | — |
Major Shareholders
| Holder | Stake | Note |
|---|---|---|
Zhou Wen | ≈40.2% (≈447 m shares) | Derived; pledges with CITIC Securities (19 m shares rolled to Jun 2026) |
Treasury shares | 1.36% (15.07 m) | Excluded from dividend base |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Listing | Relative positioning vs. PRET |
|---|---|---|---|
Modified plastics | Kingfa Sci & Tech (金发科技) | SSE 600143 | China's largest modifier, multiple times PRET's scale; broader polymer chain incl. biodegradables |
Modified plastics | Guoen Co. (国恩股份) | SZSE 002768 | Large diversified modifier; appliances-heavy |
Modified plastics | Shandong Dawn Polymer (道恩股份) | SZSE 002838 | TPV/elastomer specialist, automotive overlap |
Modified plastics | Huitong Advanced Materials (会通股份) | SSE 688219 | Appliance and auto compounder, smaller |
Modified plastics | Silver Age / Yinxi (银禧科技) | SZSE 300221 | Smaller compounder |
Modified plastics (global) | SABIC, BASF, Celanese, LyondellBasell (A. Schulman), Borealis | Various | Global incumbents at European/US OEMs |
LCP | Wote Advanced Materials (沃特股份) | SZSE 002886 | Main domestic LCP resin rival |
LCP (global) | Celanese, Polyplastics, Sumitomo Chemical, Toray; Kuraray and Murata (LCP film) | Various | Dominant global LCP film/resin suppliers PRET seeks to displace |
Cylindrical small-power cells | EVE Energy, BAK Battery, Tenpower, Lishen; Samsung SDI, LG Energy Solution, Murata | Various | Tool cell leaders; Highstar a second-tier challenger |
Storage LFP cells | CATL, EVE Energy, Hithium, REPT, CALB, BYD | Various | Massive scale; drive price competition |
Sodium-ion | CATL, HiNa (中科海钠), Zoolnasm (众钠), BYD | Various | Highstar claims #2 global shipments in 2025 |
Competitor Detail
| Benchmark (FY2025) | PRET |
|---|---|
Revenue (CNY Mn) | 9,899.1 |
Revenue growth (%) | 19.1 |
Gross margin (%) | 13.97 |
Net margin (%) | 3.71 |
