DFD(002407) EBSCN·2024-11-05 00:42Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company's performance in Q3 2024 was impacted by a significant decline in lithium hexafluorophosphate prices, leading to a year-on-year revenue drop of 21.73% and a net profit decrease of 94.60% [2]. - The average price of lithium hexafluorophosphate in the first three quarters of 2024 was 63,400 CNY per ton, down 56.1% year-on-year [2]. - The company is focusing on expanding its overseas market presence, with over 20% of its lithium hexafluorophosphate shipments going abroad, and expects this to rise to 25%-30% in the future [2]. - The company is increasing its investment in fluorine battery and sodium battery technologies, which are expected to see significant growth [2]. Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved revenue of 6.876 billion CNY, a year-on-year decrease of 21.73%, and a net profit of 25 million CNY, down 94.60% [2]. - Q3 2024 revenue was 2.267 billion CNY, a decline of 35.60% year-on-year and 8.59% quarter-on-quarter, with a net profit of -45 million CNY [2]. - The gross margin for the first three quarters of 2024 was 8.4%, a decrease of 9.7 percentage points year-on-year [2]. Product Development - The company is enhancing its fluorine battery and sodium battery production capabilities, with fluorine batteries already capturing over 30% of the electric tricycle battery market [2]. - The company has developed a new cylindrical sodium battery that significantly reduces production costs and improves safety [2]. - A project for the research and demonstration of key materials for high-performance sodium-ion batteries has been approved as a major technology project in Henan Province for 2024 [2]. Profit Forecast and Valuation - Due to the sharp decline in lithium hexafluorophosphate prices, the company's profit forecasts for 2024-2026 have been significantly reduced, with expected net profits of 78 million CNY (down 89.1%), 156 million CNY (down 86.3%), and 250 million CNY (down 82.8%) respectively [2]. - The company is positioned as a leader in the domestic lithium hexafluorophosphate industry, with substantial capacity planning in battery materials and semiconductor materials, which will support long-term growth [2].