CNGR(SZ:300919) Huachuang Securities·2024-09-02 05:50Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37.41 CNY, compared to the current price of 28.90 CNY [2]. Core Views - The company's H1 2024 revenue reached 20.086 billion CNY, a year-on-year increase of 16.33%, with a net profit attributable to shareholders of 864 million CNY, up 12.48% year-on-year [2]. - The company is accelerating its integrated layout and expanding its international capacity, particularly in Indonesia, South Korea, and Morocco, to enhance global supply capabilities [2]. - The company achieved significant growth in product shipments and made breakthroughs in several advanced technologies, including cobalt-free ternary precursor technology and solid-state battery precursors [2]. Financial Performance - In H1 2024, the company reported revenue of 20.086 billion CNY, a 16.33% increase year-on-year, and a net profit of 864 million CNY, up 12.48% year-on-year [2]. - For Q2 2024, revenue was 10.794 billion CNY, a quarter-on-quarter increase of 16.16%, with a net profit of 485 million CNY, up 27.91% quarter-on-quarter [2]. - The company expects net profits for 2024-2026 to be 2.068 billion CNY, 2.337 billion CNY, and 2.613 billion CNY, respectively, with corresponding P/E ratios of 13, 12, and 10 [3]. Strategic Developments - The company is advancing its integrated production bases in Indonesia, achieving full production capacity of 55,000 tons of low-ice nickel [2]. - Strategic partnerships in Indonesia are enhancing the company's nickel resource layout, which is expected to significantly improve profitability [2]. - The company is also developing projects in South Korea and Morocco to meet the battery material needs of over 1 million electric vehicles [2]. Technology and Innovation - The company reported a positive growth in shipments of nickel, cobalt, phosphorus, and sodium products, with total sales exceeding 140,000 tons, a 15% increase year-on-year [2]. - Breakthroughs in technology include the mass supply of cobalt-free ternary precursors and the domestic production of high-nickel materials [2]. - The company is making progress in sodium battery materials and battery recycling, with NFPP precursors achieving mass production [2].