Dynanonic(SZ:300769) Changjiang Securities·2024-09-11 02:15Investment Rating - The investment rating for the company is "Buy" and is maintained [2]. Core Views - The company reported a significant decline in revenue for H1 2024, achieving an operating income of 4.341 billion yuan, down 51.19% year-on-year. The net profit attributable to shareholders was -516 million yuan, with a non-recurring net profit of -535 million yuan [2][3]. - The production of lithium iron phosphate cathodes reached 115,500 tons in H1 2024, representing a year-on-year increase of 31.23%. However, shipments slightly decreased due to seasonal demand [3]. - The decline in profitability is attributed to a significant drop in raw material prices, particularly lithium sources, and intensified market competition, leading to lower product prices and gross margins [3]. - The company anticipates a recovery in industry profitability as demand stabilizes, prices level off, and supply slows down. Recent production adjustments are expected to improve capacity utilization and sales [3]. Summary by Sections Financial Performance - In H1 2024, the company achieved an operating income of 4.341 billion yuan, a decrease of 51.19% year-on-year. The net profit attributable to shareholders was -516 million yuan, with a non-recurring net profit of -535 million yuan [2][3]. - For Q2 2024, the company reported a net profit of -331 million yuan and a non-recurring net profit of -343 million yuan [2]. Production and Sales - The company produced 115,500 tons of lithium iron phosphate cathodes in H1 2024, a 31.23% increase year-on-year, with shipments of 105,800 tons [3]. - The company has established a production capacity of 265,000 tons per year for lithium iron phosphate, with ongoing advancements in lithium manganese iron phosphate applications [3]. Market Outlook - The lithium iron phosphate industry is currently at a low profitability level, but there are expectations for stabilization and recovery in profitability due to demand recovery and improved pricing conditions [3]. - The company is also advancing its lithium manganese iron phosphate products, which may provide new profit elasticity [3].