EASPRING(SZ:300073) Guolian Securities·2024-04-26 09:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 51.18 CNY, based on a 25x PE for 2024 [6][8]. Core Views - The company's Q1 2024 performance faced short-term pressure, with revenue of 1.517 billion CNY, down 67.67% year-on-year and 41.29% quarter-on-quarter. The net profit attributable to shareholders was 110 million CNY, a decrease of 74.36% year-on-year and 74.60% quarter-on-quarter [2][3]. - The decline in performance is attributed to a decrease in the proportion of international customers, coupled with falling raw material and cathode product prices. However, profitability is expected to recover as the share of overseas projects increases [3][4]. Summary by Sections Financial Performance - Q1 2024 gross margin was 14.89%, down 1.54 percentage points year-on-year and 2.11 percentage points quarter-on-quarter. The net margin was 7.01%, down 2.17 percentage points year-on-year and 9.56 percentage points quarter-on-quarter [3]. - Revenue projections for 2024-2026 are 14.434 billion CNY, 19.447 billion CNY, and 24.745 billion CNY, with year-on-year growth rates of -4.58%, 34.73%, and 27.25% respectively. Net profit attributable to shareholders is projected at 1.037 billion CNY, 1.215 billion CNY, and 1.540 billion CNY, with year-on-year growth rates of -46.11%, 17.15%, and 26.77% respectively [6][9]. Business Development - The company is actively expanding its next-generation cathode materials and exploring new markets such as solid-state batteries. High-nickel multi-materials and sodium-ion cathode materials have entered large-scale production, with sodium-ion cathodes achieving shipments in the hundred-ton range [4]. - Domestic and international capacity expansions are progressing smoothly, with a 300,000-ton annual production project for lithium iron phosphate in Panzhihua and a planned 500,000-ton project in Finland, which is expected to enhance the company's overseas market position [5].