DFD(SZ:002407) Minsheng Securities·2024-03-31 16:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its growth potential and market positioning [6]. Core Insights - The company reported a revenue of 11.94 billion in 2023, a decrease of 3.41% year-on-year, with a net profit of 510 million, down 73.83% [6][11]. - The forecast for 2024-2026 shows expected revenue growth of 15.5%, 36.8%, and 30.2%, respectively, with net profits projected to increase by 38.7%, 51.4%, and 50.3% [6][11]. - The company is focusing on new lithium salts and battery production, which are expected to drive future growth [6][10]. Financial Performance Summary - Revenue and Profitability: The company achieved a revenue of 11,937 million in 2023, with a projected increase to 13,788 million in 2024. The net profit for 2023 was 510 million, expected to rise to 707 million in 2024 [11][14]. - Margins: The gross margin for 2023 was 16.25%, with expectations to improve to 18.18% in 2024 [14]. - Earnings Per Share (EPS): The EPS for 2023 was 0.43, projected to increase to 0.59 in 2024 [11][14]. - Valuation Metrics: The Price-to-Earnings (PE) ratio is expected to decrease from 34 in 2023 to 24 in 2024, indicating a more attractive valuation as earnings grow [11][14]. Business Segment Insights - New Energy Materials: The new energy materials segment reported a revenue of 47.95 billion in 2023, a decline of 27.62% year-on-year, primarily due to intensified competition and fluctuations in lithium carbonate prices [6]. - Battery Production: The battery segment achieved a revenue of 26.13 billion in 2023, with a year-on-year growth of 31.97%, indicating strong demand and market penetration [6]. - Electronic Information Materials: The company has established a significant presence in the semiconductor supply chain, with a production capacity of 60,000 tons for electronic-grade hydrogen fluoride [6]. Future Outlook - The company is expected to benefit from the dual drivers of new lithium salt products and battery production, positioning it well for future growth as it navigates through the current market challenges [6][10].