DFD(002407) Zhongyuan Securities·2024-11-06 11:09Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [1][21]. Core Views - The company's performance is under pressure in the short term, with a significant decline in revenue and net profit for the first three quarters of 2024, but there is an expectation for improvement in the fourth quarter [1][5]. - The lithium battery industry is experiencing increased competition and fluctuations in raw material prices, impacting the company's product pricing and profitability [1][5]. - Long-term prospects remain positive due to the growing demand for electric vehicles and related materials, despite short-term challenges [2][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 6.876 billion yuan, a year-on-year decrease of 21.73%, and a net profit of 24.96 million yuan, down 94.60% [1][5]. - The gross profit margin for the first three quarters was 8.40%, a decline of 9.69 percentage points year-on-year, with the third quarter showing a margin of 6.98% [5][19]. - The company’s earnings per share (EPS) for 2024 is projected at 0.05 yuan, with a price-to-earnings (PE) ratio of 245.03 [5][19]. Market Dynamics - The demand for lithium hexafluorophosphate (LiPF6) is expected to grow, with the company achieving a shipment of approximately 11,000 to 12,000 tons in the third quarter, maintaining a utilization rate of 70-80% [3][5]. - The electric vehicle market in China continues to expand, with sales of new energy vehicles increasing by 32.60% year-on-year in the first nine months of 2024 [2][5]. Product Development - The company is actively expanding its market presence in the new energy battery sector, with its fluorine core batteries gaining traction among major manufacturers due to their safety and cost-effectiveness [4][5]. - The company plans to enhance its production capacity for LiFSI and other electrolyte materials, although new capacity expansion plans are being moderated due to market conditions [3][5].