STL(SZ:002648) Soochow Securities·2024-03-02 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has launched a "Quality Return Dual Improvement" action plan aimed at enhancing quality and investment value for shareholders [2] - The company focuses on high-quality development in the C2&C3 industry chain, with a systematic product layout in fields such as new energy vehicles and lithium batteries [3] - The company is building a green low-carbon industrial chain, achieving significant energy efficiency and contributing to national carbon neutrality goals [3] - The company emphasizes shareholder returns, having distributed a total of 1.773 billion yuan in dividends over the past three years [3] - Raw material prices are declining, leading to improved profitability in the C2&C3 industry chain [3] Financial Forecasts and Valuation - The company is projected to achieve net profits of 4.886 billion yuan in 2023, 6.953 billion yuan in 2024, and 8.032 billion yuan in 2025, corresponding to P/E ratios of 11.5, 8.1, and 7.0 respectively [4] - The total revenue is expected to grow from 46.806 billion yuan in 2023 to 60.155 billion yuan in 2025, with a compound annual growth rate of 26.35% and 16.52% for the respective years [4] - The report highlights a significant increase in earnings per share (EPS), projected to rise from 1.45 yuan in 2023 to 2.38 yuan in 2025 [4] Market Data - The company's closing price is reported at 16.61 yuan, with a market capitalization of approximately 55.95 billion yuan [6] - The company has a price-to-book ratio of 2.27 and a debt-to-asset ratio of 58.96% [7]