DMEGC(SZ:002056) ZHONGTAI SECURITIES·2025-04-09 14:06Investment Rating - The report assigns an "Accumulate" rating for the company for the first time [5][44]. Core Viewpoints - The company demonstrates resilience in its 2024 performance, achieving a revenue of 18.56 billion yuan, a decrease of 5.9% year-on-year, while net profit increased by 0.5% to 1.83 billion yuan [7][12]. - The company is positioned as a leader in differentiated competition within the photovoltaic industry, with significant benefits expected from its production capacity in Indonesia [7][21]. - The magnetic materials business remains robust, with a sales volume of 232,000 tons in 2024, reflecting a year-on-year growth of 16.9% [7][31]. - The lithium battery segment is rapidly expanding, with revenue growing from 470 million yuan in 2020 to 2.42 billion yuan in 2024, achieving a compound annual growth rate of 50.9% [7][35]. Summary by Sections Company Overview - The company, founded in 1980, is a leading global manufacturer of magnetic materials and has expanded into the photovoltaic and lithium battery sectors, forming a dual-driven business model [10]. Financial Performance - In 2024, the company reported a revenue of 18.56 billion yuan and a net profit of 1.83 billion yuan, with a significant turnaround in Q4, where revenue reached 4.98 billion yuan, up 25.4% year-on-year [7][12]. Photovoltaic Business - The company has established a strong presence in the photovoltaic market, with a production capacity of 23 GW for solar cells and 17 GW for modules by the end of 2024, and expects to ship 20 GW in 2025 [21][26]. - The company has successfully implemented a differentiated product strategy, including the production of all-black modules, which have gained high recognition in markets such as Europe and Japan [23][26]. Magnetic Materials Business - The company is the largest producer of ferrite magnetic materials globally, with a production capacity of 290,000 tons and a sales volume of 232,000 tons in 2024 [31][33]. - The company focuses on developing new materials and continuously iterating products to meet the demands of various applications, including AI servers and electric vehicles [33]. Lithium Battery Business - The lithium battery segment has seen rapid growth, with a sales volume of 530 million units in 2024, primarily driven by demand from electric two-wheelers [35][37]. - The company anticipates continued growth in the lithium battery sector, targeting over 600 million units in 2025 [35]. Profit Forecast and Valuation - The company is projected to achieve revenues of 25 billion yuan in 2025, with net profits of 1.97 billion yuan and an EPS of 1.21 yuan [42].