Minsheng Securities·2024-04-02 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1][34]. Core Insights - The company reported a significant decline in performance for 2023, with revenue of 32.97 billion yuan, down 21.2% year-on-year, and a net profit attributable to shareholders of 4.95 billion yuan, down 75.9% year-on-year [1][6]. - The lithium salt prices have rapidly decreased, leading to a substantial drop in profitability, while the high prices of raw materials have increased unit costs [1][11]. - The company is entering a phase of increased production from its own resources, with several projects expected to contribute significantly to output in 2024 [1][30]. Summary by Sections Revenue and Profitability - In 2023, the company achieved a revenue of 32.97 billion yuan, a decrease of 21.2% year-on-year, and a net profit of 4.95 billion yuan, down 75.9% year-on-year [1][6]. - The fourth quarter of 2023 saw a revenue of 7.29 billion yuan, a year-on-year decline of 48.7% and a net loss of 1.06 billion yuan [1][6][38]. Lithium Salt Business - The company produced and sold 104,000 and 102,000 tons of lithium carbonate equivalent (LCE), representing increases of 7.3% and 4.6% year-on-year, respectively [1][17]. - The average selling price of lithium products was 240,000 yuan per ton LCE, down 32.3% year-on-year, while the unit cost rose to approximately 210,000 yuan per ton LCE, an increase of 34.8% year-on-year [1][17]. Lithium Battery Business - The company saw a significant increase in the sales of energy storage batteries, with production and sales of 10.6 GWh and 8.2 GWh, up 56.5% and 20.4% year-on-year, respectively [1][21]. - Despite the increase in sales volume, the overall performance was negatively impacted by declining product prices due to industry overcapacity [1][21]. Asset Impairment - The company recognized an asset impairment loss of 1.64 billion yuan in 2023, with a significant portion attributed to the decline in lithium prices [1][6][11]. Future Outlook - The company is expected to benefit from increased production from its own resources, with several projects set to ramp up in 2024, including the Marion mine and the C-O salt lake project [1][30]. - The report forecasts net profits for 2024-2026 to be 1.94 billion, 3.43 billion, and 5.49 billion yuan, respectively, with corresponding price-to-earnings ratios of 41, 23, and 15 times [1][34].