TINCI(SZ:002709) Tai Ping Yang·2024-03-13 16:00Investment Rating - The report maintains a "Buy" rating for the company, Tianqi Materials (002709) [1][6]. Core Views - The leading position in the electrolyte market is expected to see a bottoming out soon, with optimism regarding subsequent volume and profit increases [1][5]. - The company is projected to recover its profitability gradually, with the first quarter of the year anticipated to be the lowest point for earnings [2][4]. - The recent maintenance of a production line for lithium hexafluorophosphate is seen as a normal procedure, indicating an improving supply-demand structure in the industry [2][4]. Financial Summary - Revenue Forecasts: Expected revenues for 2023, 2024, and 2025 are 155 billion, 90 billion, and 124 billion CNY respectively, reflecting year-on-year growth rates of -31%, -42%, and +39% [2][3]. - Net Profit Forecasts: Projected net profits for the same years are 19 billion, 13 billion, and 22 billion CNY, with year-on-year growth rates of -67%, -33%, and +70% [2][3]. - Earnings Per Share (EPS): EPS is expected to be 0.99, 0.66, and 1.12 CNY for 2023, 2024, and 2025 respectively [2][3]. - Price-to-Earnings (PE) Ratios: The current PE ratios are 21, 32, and 19 for the years 2023, 2024, and 2025 [2][3]. Industry Outlook - The overall industry is expected to outperform the CSI 300 index by more than 5% in the next six months [5]. - The company is positioned to benefit from its cost advantages and is expected to navigate through the industry's supply-demand cycles effectively [2][4].