CNGR(SZ:300919) Soochow Securities·2024-07-15 05:01Investment Rating - The report maintains a "Buy" rating for Zhongwei Co., Ltd. (300919) [1] Core Views - The company's H1 2024 performance forecast aligns with market expectations, with a projected net profit attributable to shareholders ranging from 830 million to 930 million yuan, representing a year-on-year increase of 8% to 21% [3] - The sales volume of nickel-cobalt-phosphate products exceeded 140,000 tons in H1 2024, a year-on-year increase of 15%, with expectations of 240,000 to 250,000 tons for the full year [3] - Nickel price increases are expected to enhance profitability, with the company’s nickel production projected to reach 130,000 to 140,000 tons in 2024 [3][4] Financial Forecasts and Valuation - The company’s projected net profits for 2024-2026 are 2.365 billion, 2.846 billion, and 3.473 billion yuan, respectively, with year-on-year growth rates of 22%, 20%, and 22% [4] - The report assigns a target price of 40 yuan for 2024, based on a 16x PE ratio [4] - The company’s total revenue is expected to grow from 34.273 billion yuan in 2023 to 39.861 billion yuan in 2024, reflecting a growth rate of 16.30% [2][4] Market Data - The closing price of the stock is 28.91 yuan, with a market capitalization of approximately 27.018 billion yuan [6] - The company has a price-to-book ratio of 0.95 and a debt-to-asset ratio of 54.91% [6][7] Additional Insights - The company’s nickel production capacity in Indonesia is expected to contribute significantly to its profitability, with a projected contribution of 1 to 1.2 billion yuan from nickel refining in 2024 [3][4] - The report highlights the company's position as the largest precursor manufacturer in China, which supports its valuation and growth prospects [4]