Chengxin Lithium(SZ:002240) Guoxin Securities·2025-03-25 13:31Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company reported a revenue of 4.581 billion yuan in 2024, a decrease of 42.38% year-on-year, and a net profit attributable to shareholders of -622 million yuan, down 188.51% year-on-year. The decline in lithium prices in 2024 negatively impacted the company's performance [8][3]. - The company has five lithium product production bases and four lithium resource layouts, positioning itself as a leading player in the domestic lithium market [17][20]. - The company is focusing on lithium business with rapid capacity expansion in the midstream, ownership of its own mines, and successful entry into the supply chains of major domestic and international battery enterprises, indicating significant growth potential in the future [3][24]. Financial Performance - The company's revenue and net profit forecasts for 2025-2027 are as follows: - Revenue: 6.547 billion yuan (2025), 8.522 billion yuan (2026), 10.682 billion yuan (2027), with year-on-year growth rates of 42.9%, 30.2%, and 25.3% respectively - Net profit: 225 million yuan (2025), 460 million yuan (2026), 761 million yuan (2027), with year-on-year growth rates of 136.3%, 104.2%, and 65.3% respectively - The diluted EPS is projected to be 0.25 yuan (2025), 0.50 yuan (2026), and 0.83 yuan (2027) [3][4][24]. - The company's EBIT margin is expected to improve from -7.7% in 2024 to 10.2% in 2027, indicating a recovery in profitability [4][26]. Production and Sales Data - In 2024, the company's subsidiary produced 286,000 tons of lithium concentrate, a year-on-year increase of 65%. The lithium product output reached 67,600 tons, up 19.2% year-on-year, and sales were 66,300 tons, an increase of 25.4% year-on-year [10][8].