LOPAL(603906) 长城证券·2024-11-08 08:15Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [13]. Core Insights - The company has shown continuous improvement, with a significant recovery in its operational performance, particularly in the iron-lithium segment, which is stabilizing [1]. - In the first three quarters of 2024, the company achieved a revenue of 5.661 billion yuan, a year-on-year decrease of 12.81%, but the loss narrowed significantly compared to the previous year [1]. - The company successfully listed its H shares on the Hong Kong Stock Exchange, raising approximately 495 million HKD, which will be used for expanding production capacity [3]. - The company is focusing on overseas markets to capitalize on the growing demand for iron-lithium materials, especially as domestic competition intensifies [3]. Financial Summary - Revenue (in million yuan): - 2022A: 14,072 - 2023A: 8,729 - 2024E: 8,014 - 2025E: 11,241 - 2026E: 15,576 - Net profit attributable to shareholders (in million yuan): - 2022A: 753 - 2023A: -1,233 - 2024E: -406 - 2025E: 391 - 2026E: 619 - The company expects a return to profitability by 2025, with a projected net profit of 391 million yuan [1][4]. - The report forecasts a significant increase in revenue and net profit from 2024 to 2026, with expected growth rates of 67.1%, 196.3%, and 58.2% respectively [4]. Sales Performance - The company sold 124,800 tons of iron-lithium materials in the first three quarters of 2024, a year-on-year increase of 77.65% [2]. - Traditional business segments, including lubricants and automotive maintenance products, showed stable performance with slight variations in sales [2].