Senior(300568) 海通国际·2024-11-14 09:42Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 12.60, based on a 2024 PE multiple of 42x [3][11] Core Views - The company's Q3 2024 operating profit remained stable, but net profit was impacted by reduced subsidies, with revenue reaching RMB 952 million, up 11.45% YoY and 1.37% QoQ, while net profit attributable to shareholders dropped 62.84% YoY and 20.62% QoQ [1][11] - The company is a leader in both dry and wet preparation technologies, with its dry process equipment upgraded to the sixth generation, improving efficiency tenfold, and the fifth-generation super wet line launched in August 2023, doubling the capacity of the fourth generation [2][11] - The company is expanding its domestic and international production bases, with the Nantong base fully operational and the Foshan base expected to reach full production soon, while also advancing overseas projects in Sweden and Malaysia [2][11] - The company is increasing R&D investment, with new technologies in solid-state batteries and coated separators showing excellent performance and entering customer certification and testing stages, potentially creating new growth drivers [3][11] Financial Performance and Forecast - The company's revenue for Q3 2024 was RMB 952 million, with a gross profit margin of 27.96%, down 19.94 percentage points YoY and 0.17 percentage points QoQ [1] - The report forecasts the company's net profit attributable to shareholders for 2024-2026 to be RMB 401 million, 482 million, and 609 million, respectively, with YoY changes of -30.5%, +20.2%, and +26.4% [3][6] - The company's revenue is expected to grow from RMB 3.63 billion in 2024E to RMB 6.22 billion in 2026E, with a CAGR of 24.8% [4][6] - The company's gross profit margin is expected to stabilize at 30.1% from 2024E to 2026E, while the net profit margin is projected to decline from 11.0% in 2024E to 9.8% in 2026E [4][6] Production and Capacity Expansion - The company's dry process equipment has been upgraded to the sixth generation, improving efficiency tenfold compared to the initial generation, and achieving localization [2] - The fifth-generation super wet line, launched in August 2023, has a width of over 8 meters and a single-line capacity of 250 million square meters, more than double the capacity of the fourth generation [2] - The company is expanding its production capacity with the Nantong base fully operational and the Foshan base expected to reach full production soon, while also advancing overseas projects in Sweden and Malaysia [2][11] R&D and Technological Advancements - The company's R&D team has developed oxide and polymer solid electrolytes ready for mass production, showing excellent performance in semi-solid battery evaluations and entering customer certification and testing stages [3] - The company's aramid-coated separator features high temperature resistance, strength, and rapid wetting, with a maximum rupture temperature over 400°C, providing critical support for lithium battery safety [3] - The company is accelerating the industrialization of its aramid-coated separator, expecting it to become a new growth driver [3]