Minsheng Securities·2024-09-03 08:39Investment Rating - The report maintains a "Recommended" rating for the company [1][2] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue at 9.59 billion and a net loss of 760 million, reflecting a year-on-year decrease of 47.2% and 113.0% respectively [2] - The second quarter showed a slight improvement in profitability, with a net loss of 320 million, which is a reduction of 120 million from the previous quarter [2] - The company is expected to improve its profitability in the second half of the year as its own low-cost salt lake projects begin to ramp up production [2] Financial Forecast and Key Metrics - Revenue projections for 2023A, 2024E, 2025E, and 2026E are 32,972 million, 17,631 million, 18,376 million, and 22,797 million respectively, with growth rates of -21.2%, -46.5%, 4.2%, and 24.1% [1][6] - The net profit attributable to the parent company is forecasted to be 4,947 million, 142 million, 1,239 million, and 2,096 million for the same years, with growth rates of -75.9%, -97.1%, 774.1%, and 69.2% [1][6] - Earnings per share (EPS) are projected at 2.45, 0.07, 0.61, and 1.04 for the respective years, with corresponding PE ratios of 11, 371, 42, and 25 [1][6] - The company’s comprehensive gross margin improved significantly in Q2 2024, reaching 15.9%, up from 6.2% in Q1 2024 [2] Strategic Insights - The company is focusing on ramping up production from its own resources, with significant projects in Argentina and Mali expected to enhance its cost advantages [2] - The company aims to achieve a lithium product capacity of 300,000 tons by 2030 or earlier, with ongoing projects expected to contribute to this goal [2]