YONGXING MATERIALS(SZ:002756) Guotou Securities·2024-11-06 03:23Investment Rating - The report maintains a "Buy-A" rating for the company with a 12-month target price of 47.9 CNY per share, compared to the current price of 40.41 CNY [5][8]. Core Views - The company reported a significant decline in revenue and net profit for the first three quarters of 2024, with revenue at 6.231 billion CNY, down 35.79% year-on-year, and net profit at 971 million CNY, down 68.19% year-on-year [1]. - The lithium prices have dropped significantly, with battery-grade lithium carbonate averaging 80,000 CNY per ton in Q3, down 66.77% year-on-year, and battery-grade lithium hydroxide at 75,700 CNY per ton, down 66.18% year-on-year [2]. - The company is actively working on cost reduction and technology development to improve lithium yield and enhance the utilization of by-products [2]. - The company’s subsidiary, Huqiao Mining, has completed the change of its mining license, increasing its production capacity from 3 million tons per year to 9 million tons per year, enhancing resource security [3]. - The company has completed the construction of a 3 million tons per year lithium ore efficient selection and comprehensive utilization project, which is now in the equipment installation phase [3]. Financial Performance - For Q3 2024, the company achieved revenue of 1.7386 billion CNY, down 42.97% year-on-year and 20.69% quarter-on-quarter, with a net profit of 202.4 million CNY, down 82.38% year-on-year and 32.58% quarter-on-quarter [1]. - The company distributed a cash dividend of 5.00 CNY per 10 shares, totaling 264 million CNY (including tax) [4]. - The projected revenues for 2024 to 2026 are 8.441 billion CNY, 9.548 billion CNY, and 10.995 billion CNY, respectively, with net profits of 1.173 billion CNY, 1.309 billion CNY, and 1.939 billion CNY [5].