Dowstone(300409) 天风证券·2024-10-22 12:12Investment Rating - The report assigns a "Buy" rating for the company with a target price of 15.45 CNY, based on a 15X PE for 2025 [4][35]. Core Insights - The company has transformed from a single ceramic business to a multi-business platform including carbon materials, lithium battery materials, ceramics, and strategic resources [1][8]. - In the first half of 2024, the company achieved a turnaround with a revenue of 4.135 billion CNY, a year-on-year increase of 23.9%, and a net profit of 110 million CNY, up 346% year-on-year [1][12]. - The strategic resource segment, particularly copper and cobalt, contributed significantly to the company's profitability, with a gross profit margin of 57% in the first half of 2024 [1][15]. Summary by Sections Company Overview - The company was founded in 2007 and listed on the Shenzhen Stock Exchange in 2014, evolving from a ceramic materials provider to a new materials R&D and production platform [1][8]. - The major shareholder, Rong Jihua, holds a stable 21.21% stake in the company [11]. Business Highlights - The lithium battery materials segment has seen significant growth, with exports of ternary precursors exceeding 18,000 tons in the first half of 2024, a 137% increase year-on-year [2][19]. - The carbon materials segment is entering a profit recovery phase, with revenue of 330 million CNY in the first half of 2024, up 12% year-on-year, and a gross margin of 16.86%, an increase of 5.5 percentage points [21][24]. - The strategic resources segment is actively expanding, with copper production capacity expected to reach 60,000-65,000 tons by the end of 2024 [28][31]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 9 billion CNY, 11 billion CNY, and 12.8 billion CNY, respectively, with year-on-year growth rates of 23%, 23%, and 16% [33][34]. - The company anticipates a net profit of 280 million CNY in 2024, increasing to 600 million CNY in 2025 and 760 million CNY in 2026 [33][34]. Valuation - The report compares the company with peers such as Zhongwei Co., Huayou Cobalt, and Tian Nai Technology, with an average valuation of 18X for comparable companies in 2025 [35][36].