BAOWU MAGNESIUM(SZ:002182) Tebon Securities·2024-10-29 06:23Investment Rating - The report maintains a "Buy" rating for Baowu Magnesium Industry (002182.SZ) [2] Core Views - The company's performance is under pressure due to a decline in magnesium prices, although deep-processing product sales have increased year-on-year [2] - In Q3 2024, the company reported a revenue of 2.271 billion yuan, a year-on-year increase of 11.86%, while net profit attributable to shareholders decreased by 60.55% to 33.9727 million yuan [2][3] - The average price of magnesium ingots in Q3 2024 was 19,480.78 yuan/ton, down 18.48% year-on-year [3] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a total revenue of 6.347 billion yuan, up 14.09% year-on-year, but net profit attributable to shareholders fell by 25.88% to 154 million yuan [2] - The company’s revenue projections for 2024-2026 are 8.978 billion, 12.414 billion, and 16.394 billion yuan respectively, with net profits expected to be 306 million, 705 million, and 958 million yuan [5][9] Production Capacity - The company has rich resources of dolomite, with production bases expected to reach an annual capacity of over 500,000 tons of raw magnesium and magnesium alloys once fully operational [3] Downstream Applications - The company is expanding into various fields such as die-casting and hydrogen storage, with significant developments in magnesium alloy automotive die-casting components and strategic partnerships for magnesium-based hydrogen storage [4] Market Outlook - The report anticipates that the company will leverage its integrated industrial chain advantages to continue growth despite the current challenges posed by falling magnesium prices [5]