Ronbay Technology(688005)2024-08-08 08:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 27.32 CNY, compared to the current price of 22.77 CNY [1]. Core Insights - The company reported a revenue of 6.888 billion CNY for H1 2024, a decrease of 46.58% year-on-year, with a net profit of 0.1 billion CNY, down 97.29% year-on-year. However, Q2 2024 showed a net profit of 0.48 billion CNY, a significant increase of 227.6% quarter-on-quarter [1]. - The company achieved a sales volume of 54,900 tons in H1 2024, an increase of 18.17% year-on-year, maintaining a global market share of 20% and a domestic market share of 39% in high-nickel ternary cathode materials [1]. - The company is expanding its international market presence, with significant progress in capacity construction in Korea, North America, and Europe [1]. - Research and development expenses increased by 49.07% to 179 million CNY, focusing on upgrading key materials for lithium iron phosphate and ternary batteries [1]. Financial Summary - Total revenue for 2023 is projected at 22.657 billion CNY, with a year-on-year decline of 24.8%. For 2024, revenue is expected to drop to 15.285 billion CNY, a decrease of 32.5% [2]. - The net profit for 2023 is estimated at 581 million CNY, with a significant decline of 57.1%. The forecast for 2024 is a net profit of 207 million CNY, down 64.3% [2]. - The earnings per share (EPS) for 2023 is projected at 1.20 CNY, with a forecast of 0.43 CNY for 2024 [2]. - The price-to-earnings (P/E) ratio is expected to be 53 for 2024, decreasing to 21 in 2025 and 17 in 2026 [2].