EASPRING(SZ:300073) China Post Securities·2024-03-31 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within six months [7]. Core Views - The company reported a net profit of 1.92 billion yuan for 2023, which aligns with expectations. Revenue for the same year was 15.13 billion yuan, reflecting a year-on-year decline of 28.86% [3][4]. - The company maintained a high capacity utilization rate of approximately 73% in 2023, with effective lithium battery material capacity of 83,000 tons and production of 60,800 tons [3]. - The gross margin for the lithium battery materials business increased to 17.89%, a year-on-year rise of 0.67%, showcasing strong profitability [3]. - New products, including manganese iron lithium and solid-state battery cathodes, have been successfully introduced to leading domestic battery clients [3]. - The company is undergoing a state-owned enterprise reform, with a planned private placement to its major shareholder, aiming to raise between 800 million and 1 billion yuan to enhance its financial strength [3]. Financial Summary - The company forecasts revenues of 10.8 billion yuan, 13.08 billion yuan, and 14.97 billion yuan for 2024, 2025, and 2026, respectively, with expected growth rates of -28.60%, 21.11%, and 14.46% [4][5]. - The projected net profit for 2024 is 1.11 billion yuan, with a significant decline of 42.48% year-on-year, followed by recoveries in subsequent years [4][5]. - The earnings per share (EPS) is expected to be 2.19 yuan in 2024, increasing to 3.35 yuan by 2026 [5][6]. - The company's price-to-earnings (P/E) ratio is projected to be 18.61, 14.06, and 12.15 for the years 2024, 2025, and 2026, respectively [4][5].