Chengxin Lithium(SZ:002240) INDUSTRIAL SECURITIES·2024-04-01 16:00Investment Rating - The report maintains an "Accumulate" rating for the company Shengxin Lithium Energy (002240) [1][2]. Core Views - The company's performance is under pressure due to a decline in lithium prices, with a focus on the progress of its lithium salt project in Indonesia [1]. - The report anticipates continued pressure on lithium salt prices due to an oversupply in the market, with expectations for price declines in the medium term [2]. Financial Performance Summary - In 2023, the company achieved a revenue of 7.951 billion yuan, a year-on-year decrease of 34.0% [3]. - The net profit attributable to shareholders was 702 million yuan, down 87.4% year-on-year [3]. - The gross profit margin for 2023 was 12.5%, with a projected increase to 20.2% in 2024 [3]. - The earnings per share (EPS) for 2023 was 0.76 yuan, with forecasts of 1.16 yuan, 1.37 yuan, and 1.50 yuan for 2024, 2025, and 2026 respectively [3][4]. Market Data - The average price of battery-grade lithium carbonate in 2023 was approximately 258,800 yuan per ton, a decline of 46.36% year-on-year [1]. - The company's lithium carbonate sales volume in 2023 was about 52,900 tons, an increase of 11.45% year-on-year [1]. Future Projections - The report projects net profits of 1.07 billion yuan, 1.26 billion yuan, and 1.39 billion yuan for 2024, 2025, and 2026 respectively [2][3]. - The price-to-earnings (PE) ratios based on the closing price on March 29 are projected to be 16.6, 14.1, and 12.8 for the years 2024, 2025, and 2026 respectively [2][3].