TINCI(SZ:002709) Guolian Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 24.49 CNY, based on a PE ratio of 31 times for 2024 [6][8]. Core Views - The company reported a significant decline in revenue and net profit for 2023, with revenue at 15.405 billion CNY, down 30.97% year-on-year, and net profit at 1.891 billion CNY, down 66.92% year-on-year [2][3]. - The decline in profitability is attributed to inventory impairment and a decrease in gross margin, with a gross margin of 25.26% for lithium battery materials, down 13.29 percentage points year-on-year [3]. - The company is enhancing its production capacity and accelerating the launch of new products, including a 300,000-ton phosphate iron project and a 15.2 million-ton lithium battery new materials project [4]. - The company is expanding its overseas operations, with a production capacity of 13,000 tons of electrolyte in Germany and plans for additional production bases in North America and Morocco [5]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 14.993 billion CNY, 18.920 billion CNY, and 23.102 billion CNY, respectively, with year-on-year growth rates of -2.67%, 26.19%, and 22.10% [6][7]. - The projected net profits for the same years are 1.513 billion CNY, 1.772 billion CNY, and 2.445 billion CNY, with corresponding growth rates of -19.95%, 17.06%, and 38.01% [6][7]. - The company’s earnings per share (EPS) are expected to be 0.79 CNY, 0.92 CNY, and 1.27 CNY for 2024, 2025, and 2026, respectively [6][7].