Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [6][19]. Core Insights - The company is positioned as a "small giant" in the lithium primary battery sector, focusing on lithium manganese button batteries, with a robust growth trajectory driven by strong downstream demand [17][18]. - The global lithium primary battery market is expected to reach $3.84 billion by 2028, with a CAGR of 7% from 2021 to 2028, indicating significant growth potential [18][95]. - The company has successfully launched new products and is expanding production capacity to meet increasing market demand, with a focus on innovation and technological advancement [18][135]. Summary by Sections 1. Company Overview - The company has been deeply engaged in the lithium micro-power sector since 2004 and is recognized as a national high-tech enterprise [17][58]. - It has a concentrated shareholding structure, with the top ten shareholders holding 73.19% of the shares [60]. 2. Market Outlook - The lithium primary battery market is characterized by high entry barriers and significant growth potential, particularly in the IoT and electronic price tag sectors [95][125]. - The company is well-positioned to capitalize on emerging market demands, including smart monitoring and electronic price tags, which are expected to see substantial growth [18][42][43]. 3. Production and R&D - The company has a strong focus on R&D, with expenditures increasing from 8.1 million yuan in 2018 to 18.6 million yuan in 2023, reflecting a CAGR of 18.09% [135][136]. - New product lines, including flexible all-solid-state batteries and improved lithium manganese battery electrolytes, have been successfully developed and are expected to enhance market competitiveness [137][138]. 4. Financial Performance - The company has shown steady revenue growth, with a projected revenue increase of 0% in 2024, followed by 10% growth in 2025 and 2026 [4][5]. - The net profit attributable to the parent company is expected to grow significantly, with forecasts of 0.66 billion yuan in 2024, 0.74 billion yuan in 2025, and 0.81 billion yuan in 2026, representing year-on-year growth rates of 47.8%, 11.7%, and 10.2% respectively [6][19]. 5. Investment Recommendations - The report suggests that the company’s stock is undervalued compared to its peers, with a projected PE ratio of 25 for 2024, compared to an average of 18 for comparable companies [6][7]. - The company’s strategic initiatives and market positioning are expected to drive future growth, making it a compelling investment opportunity [6][19].
力佳科技：锂锰扣式电池“小巨人”，下游需求旺盛扩产稳健发展