THXN(SZ:300390) Changjiang Securities·2024-02-27 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company has launched a "Quality Return Dual Improvement" action plan, demonstrating confidence in long-term development and enhancing investor engagement [5]. - The company is one of the most modern and large-scale producers of battery-grade lithium hydroxide globally, with a core management team possessing extensive industry experience and strong operational capabilities [5]. - Despite a significant decline in lithium prices in 2023, the company benefits from increased lithium salt production capacity and flexible procurement and sales strategies, ensuring stable profits [5][6]. - The company has established long-term partnerships with well-known domestic and international clients in its anti-static ultra-clean technology and medical device businesses, which are expected to contribute positively to future performance [5][6]. Summary by Sections Event Description - The company has outlined measures regarding its main business development, share repurchase, historical dividends, and investor relations management, reflecting its long-term growth confidence [5]. Financial Performance - The company expects a net profit attributable to shareholders of 1.65-1.75 billion yuan for 2023, a year-on-year decrease of 73.43%-74.95% [5]. - The expected net profit after deducting non-recurring gains and losses is projected to be 1.363-1.463 billion yuan, a year-on-year decrease of 77.67%-79.19% [5]. - The average price of battery-grade lithium hydroxide in 2023 is expected to be 263,300 yuan per ton, down 44% quarter-on-quarter, while battery-grade lithium carbonate is expected to average 258,800 yuan per ton, down 46% quarter-on-quarter [5]. Production Capacity and Expansion - The company has actively planned lithium battery material production capacity, with operational bases established in Yibin, Meishan, and Yichun [6]. - The Tianhua Times project has reached an annual production capacity of 60,000 tons of battery-grade lithium hydroxide, while the Weinan Lithium Industry project is expected to reach 25,000 tons by December 2023 [6]. - The company has signed a project investment contract to build lithium battery material production lines in Meishan, with a total investment of 5 billion yuan [6]. Supply Chain and Customer Relationships - The company has secured long-term supply agreements with several lithium spodumene suppliers and is actively expanding its customer base, including international clients [6]. - The company maintains strong relationships with leading downstream enterprises, ensuring the absorption of new lithium salt production capacity [6]. Market Outlook - The company is expected to benefit from an improved supply-demand balance in the lithium market, which may support a recovery in profitability [6].