BAOWU MAGNESIUM(SZ:002182) Tebon Securities·2024-04-26 11:30Investment Rating - The report maintains a "Buy" rating for Baowu Magnesium Industry (002182.SZ) [3][7]. Core Views - The magnesium industry faced weak supply and demand in 2023, but the company's sales volume of magnesium products is expected to improve in the future [3][5]. - In 2023, the company's revenue was 7.651 billion yuan, a year-on-year decrease of 15.96%, and the net profit attributable to the parent company was 306 million yuan, down 49.82% year-on-year. However, in Q1 2024, revenue increased by 10.03% year-on-year to 1.863 billion yuan, and net profit rose by 19.94% to 60.72 million yuan [4][5]. Summary by Sections Market Performance - Baowu Magnesium's stock performance has been significantly lower than the market, with a 34% decline compared to the CSI 300 index [3]. Financial Performance - In 2023, the company reported a revenue of 7.651 billion yuan and a net profit of 306 million yuan. The forecast for 2024 shows expected revenues of 9.126 billion yuan and a net profit of 417 million yuan [4][10]. Industry Overview - The global magnesium market experienced a significant downturn in 2023, with production down by 9.9% to 1 million tons and consumption down by 8.7% to approximately 1.05 million tons. The average price of magnesium ingots in China fell by 27.23% to 23,699.21 yuan per ton [5][6]. Demand Expansion - The company is actively expanding its demand in various sectors, including automotive die-casting, construction templates, low-altitude economy, and magnesium-based hydrogen storage materials [6][7]. Profit Forecast - The revenue projections for Baowu Magnesium for 2024 to 2026 are 9.126 billion yuan, 12.414 billion yuan, and 16.394 billion yuan, respectively, with net profits expected to be 417 million yuan, 707 million yuan, and 959 million yuan [7][10].