Ronbay Technology(SH:688005) Zhongyuan Securities·2025-04-11 05:39Investment Rating - The report assigns an "Accumulate" investment rating for the company, indicating a potential increase in stock price relative to the market index [4][10]. Core Views - The company's performance is under short-term pressure, with significant declines in revenue and profit for 2024, but there are expectations for recovery in 2025 driven by the growth in the electric vehicle market and battery production [7][8]. - The company is a leader in the production of ternary materials, with a notable market share and a strong position in the industry, despite facing challenges from price declines and increased competition [8][10]. - The report highlights the company's strategic partnerships and product development in high-nickel materials and sodium-ion batteries, which are expected to enhance its competitive edge [8][10]. Summary by Sections Financial Performance - In 2024, the company reported revenue of 15.088 billion yuan, a decrease of 33.41% year-on-year, with a net profit of 296 million yuan, down 49.06% [7][11]. - The company’s cash flow from operating activities fell by 70.85% to 523 million yuan, indicating significant financial strain [7]. - The proposed dividend distribution is 3.70 yuan per 10 shares, totaling 261 million yuan, which represents 88.11% of the net profit [7]. Market Trends - The report notes a 36.10% year-on-year increase in electric vehicle sales in China for 2024, with a total of 12.859 million units sold [7]. - The production of power batteries in China reached 1,096.8 GWh in 2024, marking a 40.96% increase, with exports contributing significantly to this growth [7]. Product and Industry Outlook - The company’s output of ternary materials increased by 22.37% in 2024, despite a drop in average prices due to competitive pressures [8]. - Expectations for 2025 include a recovery in sales driven by the ongoing demand for electric vehicles and advancements in battery technology [8][10]. - The company is enhancing its product mix and customer base, with significant growth in new energy materials such as manganese iron phosphate and sodium-ion batteries [8]. Valuation and Future Projections - The report forecasts earnings per share of 1.08 yuan and 1.40 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 17.97 and 13.88 [10][11]. - The valuation is considered reasonable relative to industry standards, with expectations of improved profitability as market conditions stabilize [10].