HUAYOU COBALT(SH:603799) GF SECURITIES·2024-04-24 05:32Investment Rating - The report assigns a "Buy" rating to the company, Huayou Cobalt Co., Ltd. (603799.SH), with a current price of 28.27 CNY and a reasonable value of 36.27 CNY [1][4]. Core Views - The company's revenue for 2023 reached 66.3 billion CNY, a year-on-year increase of 5%, while the net profit attributable to shareholders decreased by 14% to 3.35 billion CNY due to falling metal prices [1][4]. - In Q1 2024, the company reported a revenue of 15 billion CNY, a decline of 22% year-on-year, with net profit dropping by 49% [1][4]. - The company achieved significant growth in lithium battery precursor shipments, with a total of 95,000 tons shipped in 2023, marking a 31% increase year-on-year [1][4]. - The company has established strategic partnerships with major firms and is progressing on nickel resource projects in Indonesia, which are expected to enhance global supply channels [1][4]. Financial Summary - Revenue (in million CNY): - 2022A: 63,034 - 2023A: 66,304 - 2024E: 73,133 - 2025E: 79,052 - 2026E: 87,561 [3][8] - Net Profit (in million CNY): - 2022A: 3,908 - 2023A: 3,351 - 2024E: 3,101 - 2025E: 3,524 - 2026E: 4,071 [3][8] - EPS (in CNY per share): - 2022A: 2.48 - 2023A: 2.05 - 2024E: 1.81 - 2025E: 2.06 - 2026E: 2.38 [3][8] Investment Forecast - The company is expected to see stable performance from 2024 to 2026, with projected EPS of 1.81, 2.06, and 2.38 CNY per share, respectively [4][8]. - The report anticipates a gradual stabilization of unit gross profit due to the ramp-up of nickel, lithium, precursor, and cathode material projects [2][4].