TINCI(SZ:002709) EBSCN·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Views - The company's performance in 2023 was significantly impacted by a 31% year-on-year decline in revenue to 15.405 billion yuan and a 66.9% drop in net profit to 1.891 billion yuan, primarily due to falling prices in the lithium battery materials sector [2]. - Despite the challenges, the company continues to expand its production capacity and increase the self-supply ratio of core raw materials, with a current capacity of 905,600 tons for lithium-ion battery materials [2]. - The company is accelerating its overseas capacity layout, with successful production at its German OEM factory and ongoing projects in the U.S. and Morocco, aiming to meet the demand from international clients like Tesla and LGES [2]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 15.405 billion yuan, down 31% from the previous year, and a net profit of 1.891 billion yuan, down 66.9% [2]. - The fourth quarter saw a revenue of 3.281 billion yuan, a 44.3% year-on-year decline, and a net profit of 139 million yuan, down 89.7% year-on-year [2]. - The average selling price of lithium battery materials fell to 23,000 yuan per ton, a decrease of 52.3% year-on-year, contributing to a gross margin of 25.9%, down 12.1 percentage points [2]. Production Capacity and Expansion - The company is actively enhancing its lithium battery materials production capacity, with ongoing projects that include a 41,000 tons per annum lithium-ion battery materials project and a 200,000 tons lithium battery materials project [2]. - The self-supply ratio for liquid lithium hexafluorophosphate and LiFSI reached over 93%, with some core additives achieving an 80% self-supply ratio [2]. Market Strategy - The company is deepening its partnerships with major domestic and international clients in the daily chemical materials sector, achieving significant breakthroughs in supply chains with brands like Estée Lauder and expanding its market share with multinational corporations [2]. - The focus for 2024 includes expanding into the European, American, and Korean markets for lithium battery electrolytes and cathode materials [2]. Profit Forecast and Valuation - The profit forecasts for 2024, 2025, and 2026 are adjusted to 1.408 billion yuan (down 68.8%), 2.123 billion yuan (down 62.8%), and 2.606 billion yuan, respectively [2]. - The company is positioned as a leader in the electrolyte industry, with significant advantages in capacity planning and supply chain layout [2].