HUAYOU COBALT(SH:603799) Bank of China Securities·2025-04-30 06:39Investment Rating - The report maintains a rating of "Accumulate" for the company [2][4] Core Views - The company has demonstrated significant year-on-year growth in net profit for both the 2024 annual report and the 2025 Q1 report, showcasing the advantages of its integrated operations [4][7] - The company is enhancing its global footprint and strengthening its supply chain collaboration, which supports the "Accumulate" rating [4][7] Financial Summary - The company's revenue for 2024 is projected at RMB 60,946 million, a decrease of 8.08% from 2023, while net profit is expected to increase by 24.0% to RMB 4,155 million [6][11] - For Q1 2025, the company achieved revenue of RMB 17,842 million, a year-on-year increase of 19.24%, and net profit of RMB 1,252 million, up 139.68% [9][11] - The company’s earnings per share (EPS) for 2025 is adjusted to RMB 3.04, reflecting a significant increase from the previous estimate of RMB 2.07 [4][6] Production and Sales Performance - The company reported a 45.78% year-on-year increase in nickel product shipments, totaling approximately 184,300 metric tons, and a 13.18% increase in cobalt shipments, totaling about 46,800 metric tons [7][8] - The company has optimized its product structure by reducing the shipment of lower-margin products, which has impacted the overall lithium battery material shipments [7][8] Strategic Developments - The company is advancing its nickel and cobalt resource development projects in Indonesia and the Democratic Republic of Congo, which are expected to enhance its competitive position in the market [7][8] - The company has successfully launched several projects, including a 50,000-ton nickel sulfate project in Indonesia and a 66,000-ton cathode material project in South Korea, contributing to its integrated supply chain [7][8]