EASPRING(SZ:300073) Soochow Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - In 2023, the company achieved a net profit attributable to shareholders of 1.92 billion yuan, a year-on-year decrease of 14.80%, which met market expectations [3][9] - The company's revenue for 2023 was 15.127 billion yuan, down 28.86% year-on-year, with a gross margin of 18.06%, an increase of 0.66 percentage points [3][9] - The company has successfully begun mass production of solid-state battery cathodes, achieving hundreds of tons in shipments and supplying major automotive manufacturers [4][14] - The forecast for 2024-2026 net profit attributable to shareholders is adjusted to 850 million, 1.09 billion, and 1.57 billion yuan respectively, reflecting a significant decrease in 2024 due to weaker overseas demand [17] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 15.127 billion yuan, a decrease of 28.86% year-on-year, and a net profit of 1.924 billion yuan, down 14.80% year-on-year [3][9] - The fourth quarter of 2023 saw revenue of 2.584 billion yuan, a decline of 64.00% year-on-year, and a net profit of 433 million yuan, down 44.56% year-on-year [9][10] - The gross margin for 2023 was 18.06%, with a net profit margin of 12.68%, reflecting an increase in profitability metrics despite lower revenues [3][9] Production and Sales - The company produced 60,800 tons of ternary cathode materials in 2023, with a forecasted 20% increase in shipments for 2024 [3][14] - The company has entered the domestic energy storage supply chain for lithium iron phosphate, with expected shipments of 20,000 tons in 2024 [3][14] - Solid-state cathodes have achieved significant shipment volumes, with products being used in vehicles from leading manufacturers [4][14] Profitability Outlook - The company maintained a high unit profit level in 2023, with a non-GAAP profit per ton exceeding 30,000 yuan, although a decline is expected in 2024 due to reduced overseas customer ratios [3][14] - The forecast for 2024 indicates a potential drop in profitability to below 10,000 yuan per ton [3][14] Investment Valuation - The adjusted profit forecasts for 2024-2026 reflect a significant decrease in expected earnings, with corresponding P/E ratios of 23x, 18x, and 13x for the respective years [17] - Despite the adjustments, the company's profitability remains above the market average, justifying the "Buy" rating [17]