TINCI(SZ:002709) Soochow Securities·2024-03-25 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 15.405 billion yuan in 2023, a decrease of 30.97% year-on-year, with a net profit attributable to shareholders of 1.891 billion yuan, down 66.92% year-on-year. The gross margin for 2023 was 26%, a decrease of 12 percentage points [3][4] - In Q4 2023, the company achieved a revenue of 3.3 billion yuan, a quarter-on-quarter decrease of 21%, and a net profit of 140 million yuan, down 70% quarter-on-quarter. The gross margin for Q4 2023 was 17%, a decrease of 7.3 percentage points [3] - The decline in hexafluorophosphate prices has put pressure on the profitability of electrolyte products, with expected unit profitability in 2024 dropping to approximately 0.2 thousand yuan [3] - The company’s electrolyte shipments in 2023 reached 396,000 tons, an increase of 24% year-on-year, with a domestic market share of 36.4%. For Q4 2023, shipments are estimated at 110,000 tons, a quarter-on-quarter decrease of about 5% [3] - The company anticipates a significant increase in production starting from March 2024, with expected shipments of over 500,000 tons in 2024, maintaining a growth rate of 25% [3] Financial Summary - The total revenue forecast for 2024 is 14.69 billion yuan, with a year-on-year decrease of 4.64%. The net profit attributable to shareholders is projected at 1.213 billion yuan, down 35.82% year-on-year [2][4] - The company’s capital expenditure in 2023 was 3.1 billion yuan, a decrease of 16% year-on-year, and inventory at the end of 2023 was 1.2 billion yuan, down 51% from the beginning of the year [4][10] - The company’s operating cash flow for 2023 was 2.274 billion yuan, a decrease of 45% year-on-year, while the net cash flow decreased by 2.402 billion yuan [10]