Farasis Energy(SH:688567) Huachuang Securities·2024-06-18 10:31Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 13.7 CNY, compared to the current price of 11.36 CNY [2]. Core Views - The establishment of the Ganzhou Super Factory, with an annual production capacity of 30 GWh, marks a significant milestone for the company, enhancing production efficiency and reducing costs [2]. - Continuous technological research and innovation have led to the development of competitive new energy battery products, with applications across various markets including electric vehicles and energy storage [2]. - The company has secured key clients, notably being a core supplier for Mercedes-Benz electric vehicles, which strengthens its competitive advantage [2]. - Due to rising raw material prices and increased competition in the battery industry, the company's net profit forecasts for 2024-2026 have been adjusted to -173 million, 298 million, and 781 million CNY respectively [2]. Financial Summary - Total revenue is projected to grow from 16,436 million CNY in 2023 to 26,318 million CNY in 2026, reflecting a compound annual growth rate (CAGR) of approximately 17.1% [3]. - The company is expected to experience a significant turnaround in net profit, moving from a loss of 1,868 million CNY in 2023 to a profit of 781 million CNY by 2026, indicating a strong recovery trajectory [3]. - The price-to-earnings (P/E) ratio is forecasted to improve from -80 in 2024 to 18 in 2026, while the price-to-sales (P/S) ratio is expected to decrease from 0.7 in 2024 to 0.5 in 2026 [3].