UDC(SZ:000036) HTSC·2025-12-23 12:16Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company plans to acquire 100% of Argentum, a lithium project in South America, for USD 175 million, marking its first significant overseas salt lake resource acquisition, which enhances the certainty of its second growth curve [1][2] - The Arizaro project in Argentina is the largest undeveloped salt lake in the South American "lithium triangle," covering approximately 205 square kilometers with an average lithium concentration of 297 mg/L, translating to a total resource of about 2.5 million tons of LCE [2] - The company has established a stable production line for lithium extraction and processing, with eight core patents in key areas, and aims to enter the lithium production business, thereby diversifying its revenue streams [2] - The real estate sector continues to provide cash flow, with significant sales progress in core projects, such as the "Yupin Luanshan" project in Shenzhen, which has a projected value of RMB 4-5 billion [3] Financial Forecast and Valuation - The company’s projected net profits for 2025, 2026, and 2027 are RMB 80 million, RMB 90 million, and RMB 190 million, respectively, with corresponding EPS of RMB 0.06, RMB 0.07, and RMB 0.13 [4] - The target price has been adjusted to RMB 5.15, reflecting a 60% premium on the estimated 2026 P/B ratio of 1.38x, driven by improved lithium supply-demand dynamics and the company's strategic acquisitions [4]