Qinghai Salt Lake Industry (SZ:000792) Great Wall Securities·2024-09-11 11:49Investment Rating - The report maintains an "Accumulate" rating for the company [1][10][17] Core Views - The company's performance is under short-term pressure, but there is optimism regarding the formation of China Salt Lake Group, which is expected to enhance the integration and high-quality development of domestic salt lake resources [3][10] Financial Summary - Revenue (in million CNY): - 2022A: 30,739 - 2023A: 21,579 - 2024E: 15,053 - 2025E: 16,466 - 2026E: 19,414 - YoY Growth Rates: 108.0%, -29.8%, -30.2%, 9.4%, 17.9% [1][11] - Net Profit (in million CNY): - 2022A: 15,568 - 2023A: 7,914 - 2024E: 4,964 - 2025E: 5,832 - 2026E: 7,253 - YoY Growth Rates: 247.6%, -49.2%, -37.3%, 17.5%, 24.4% [1][11] - Key Financial Ratios: - ROE: 69.0% (2022A), 27.0% (2023A), 14.5% (2024E), 14.5% (2025E), 15.3% (2026E) [1][11] - EPS: 2.87 (2022A), 1.46 (2023A), 0.91 (2024E), 1.07 (2025E), 1.34 (2026E) [1][11] - P/E: 5.2 (2022A), 10.2 (2023A), 16.2 (2024E), 13.8 (2025E), 11.1 (2026E) [1][11] - P/B: 3.2 (2022A), 2.5 (2023A), 2.2 (2024E), 1.9 (2025E), 1.6 (2026E) [1][11] Operational Insights - The company's main products, potassium chloride and lithium carbonate, experienced a decline in revenue due to price drops, with potassium chloride revenue at 5.338 billion CNY (down 14.29% YoY) and lithium carbonate revenue at 1.683 billion CNY (down 49.81% YoY) [3][4] - The average selling price of lithium carbonate fell significantly by 62.81% YoY, with a reported average price of 93,949.58 CNY/ton in 1H24 [3][4] Strategic Developments - The company is progressing well with a new 40,000-ton lithium salt project, expected to enhance its competitive edge in lithium extraction [9] - A strategic cooperation agreement was signed with China Minmetals, which is anticipated to strengthen the company's shareholder background and facilitate the formation of China Salt Lake Group [9][10]