Zhejiang Tiantie Industry (SZ:300587) Great Wall Securities·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [6]. Core Views - The company is facing short-term performance pressure due to external factors affecting downstream clients and a decline in product prices, particularly in the "vibration reduction" and "lithium compound" businesses. However, the long-term demand trend in the rail transit industry and the company's ongoing investments in the lithium battery sector are expected to enhance future performance [22]. - The company plans to invest approximately 1.45 billion yuan in a modified graphite anode material project, which is anticipated to generate an annual output value of 2.5 billion yuan upon completion. This project aligns with the growing demand in the lithium battery industry and supports the company's strategic positioning [24]. - The company has announced a restricted stock incentive plan aimed at enhancing team cohesion and competitiveness, which is expected to attract and retain key talent [25][26]. Financial Summary - The company's revenue for 2023 is projected to be 1.356 billion yuan, a year-on-year decrease of 21.2%. However, revenue is expected to rebound to 2.061 billion yuan in 2024, reflecting a growth rate of 52.0% [21]. - The net profit attributable to the parent company is forecasted to be a loss of 564 million yuan in 2023, with a recovery to 496 million yuan in 2024 and 533 million yuan in 2025 [21][33]. - The company's EPS is expected to be -0.52 yuan in 2023, improving to 0.46 yuan in 2024 and 0.50 yuan in 2025 [21][33].