Guoxin Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy (Maintain)" [2][15] Core Views - The company reported a revenue of 40.50 billion yuan in 2023, a slight increase of 0.13% year-on-year, but the net profit dropped significantly by 69.75% to 7.30 billion yuan [3][6] - The company is focusing on increasing production capacity and solidifying its upstream lithium resource layout, with strategic partnerships to enhance its market position [10][11] - The company has adjusted its lithium pricing mechanism to a monthly basis from a quarterly basis, which is expected to improve pricing stability [10][11] Financial Performance - Revenue and Profit Forecasts: - 2024E revenue is projected at 11.73 billion yuan, a decrease of 71.0% year-on-year, with a gradual recovery expected in subsequent years [3][15] - Net profit for 2024E is forecasted at 4.53 billion yuan, down 38.0% year-on-year [3][15] - Earnings Per Share (EPS) is expected to be 2.76 yuan in 2024E, with a PE ratio of 17.4 [3][15] Production and Inventory - The company achieved a total lithium concentrate production of 1.52 million tons in 2023, with a significant increase attributed to higher ore grades and improved recovery rates [3][8] - As of the end of 2023, lithium concentrate inventory stood at approximately 409,400 tons, while lithium compound inventory was about 13,200 tons [3][8] Strategic Developments - The company is actively expanding its lithium production capacity, with plans to increase its mid-term capacity to over 140,000 tons per year [10][12] - The company holds a 22.16% stake in SQM, which is expected to contribute positively to its investment returns as SQM plans to increase its lithium production in 2024 [12][15]