TINCI(SZ:002709) Huajin Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy -B" rating for the company, indicating a strong potential for investment returns over the next six months [1][5]. Core Insights - The company reported a total revenue of 15.405 billion yuan for 2023, a year-on-year decrease of 31% [1]. - The net profit attributable to shareholders was 1.891 billion yuan, down 66.9% compared to the previous year [3]. - The company plans to distribute a cash dividend of 3 yuan per 10 shares, which exceeds 30% of the net profit for 2023 [1]. - The demand for lithium batteries continues to grow due to the rapid expansion of the global electric vehicle and energy storage markets, positioning the company as a key supplier in the lithium battery materials sector [1][3]. - The company achieved a sales volume of 396,000 tons of electrolyte, representing a 24% increase, with a market share expected to reach 36.4% [1]. Financial Performance Summary - Revenue for 2022 was 22.317 billion yuan, with a significant drop to 15.405 billion yuan in 2023, and projected revenues of 14.770 billion yuan, 19.347 billion yuan, and 24.900 billion yuan for 2024, 2025, and 2026 respectively [3][4]. - The gross profit margin decreased from 38% in 2022 to 25.9% in 2023, with further projections of 21.4%, 22.8%, and 23.8% for the following years [3][4]. - The company’s return on equity (ROE) fell from 45.5% in 2022 to 13.6% in 2023, with expectations of recovery to 16.3% by 2026 [3][4]. Market Position and Strategy - The company is focusing on enhancing its supply chain for core materials, achieving over 93% self-supply for liquid lithium hexafluorophosphate and over 80% for certain core additives [1]. - The company is expanding its production capacity in various regions, including Sichuan and Chizhou, and is advancing projects in Germany and North America [1]. - The company is actively developing new products and improving product performance to enhance competitiveness in the market [1].