Kings(SH:603505) Guolian Securities·2024-03-28 16:00Investment Rating - The report assigns a rating of "Accumulate" with a target price of 31.32 CNY [4][22]. Core Insights - The company achieved a record high performance in 2023, driven by the production of the "Selection and Chemical Integration" project and the tailings lithium extraction project, alongside a significant increase in both volume and price of fluorite [5][24]. - The company plans to leverage its technology to enhance resource extraction efficiency and expand its operations internationally, particularly in Mongolia, to mitigate domestic resource constraints [14][22]. Financial Performance Summary - In 2023, the company reported revenue of 1.896 billion CNY, an increase of 81% year-on-year, and a net profit attributable to shareholders of 349 million CNY, up 57% year-on-year [1][6]. - The fourth quarter of 2023 saw revenue of 741 million CNY, a year-on-year increase of 87% and a quarter-on-quarter increase of 24% [1]. - The company forecasts revenues of 3.688 billion CNY, 4.928 billion CNY, and 5.401 billion CNY for 2024, 2025, and 2026 respectively, with corresponding year-on-year growth rates of 94.52%, 33.63%, and 9.61% [6][22]. Project Developments - The company has initiated trial production of its third mineral processing line, which produced 502,400 tons of fluorite powder in 2023, with costs reduced to below 1,000 CNY per ton [14]. - The lithium extraction project has also commenced production, contributing significant profits within a short timeframe [14]. Market Position and Strategy - The company is focusing on expanding its production capacity in Mongolia, aiming to double its single mine capacity within 3-5 years by utilizing its proprietary technology [14][22]. - The report highlights the company's strategy of "light asset technology leveraging heavy asset resources," which is expected to continue delivering results [27].