DFD(SZ:002407) East Money Securities·2024-04-07 16:00Investment Rating - The report assigns an "Accumulate" rating to the company [2][19]. Core Views - The company experienced a slight decline in revenue and a significant drop in profit in 2023, with total revenue of 11.94 billion yuan, down 3.4% year-on-year, and a net profit attributable to shareholders of 510 million yuan, down 73.8% year-on-year [1]. - The lithium hexafluorophosphate market is currently at a low price point, with many second and third-tier manufacturers operating at a loss, indicating that the current prices are likely at the bottom of the industry cycle [5]. - The company is expected to see revenue growth in the coming years, with projected revenues of 12.21 billion yuan in 2024, 14.61 billion yuan in 2025, and 18.79 billion yuan in 2026, reflecting year-on-year growth rates of 2.28%, 19.66%, and 28.65% respectively [2][10]. Financial Summary - In 2023, the company's gross margin and net profit margin were 16.25% and 5.37%, respectively, both showing significant declines of 14.3 percentage points and 11.0 percentage points year-on-year [1]. - The company's electronic materials business showed strong growth, achieving revenue of 1.24 billion yuan in 2023, a year-on-year increase of 79.0%, and contributing 23.3% to the total gross profit [18]. - The lithium battery segment generated revenue of 2.61 billion yuan, up 32% year-on-year, with a gross margin of 9.8% [18]. - The projected earnings per share (EPS) for the next three years are 0.30 yuan, 0.47 yuan, and 0.86 yuan, with corresponding price-to-earnings (P/E) ratios of 47, 30, and 17 times [2][10].