Hunan Yuneng New Energy Battery Material (SZ:301358) Minsheng Securities·2024-04-27 05:30Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Views - The company reported a significant decline in revenue and net profit for Q1 2024, with revenue at 4.52 billion yuan, down 65.69% year-on-year, and net profit at 159 million yuan, down 43.56% year-on-year. However, the operating cash flow showed improvement with a net cash flow of -97 million yuan, up 91.57% year-on-year [2]. - The company is nearing full production capacity, with lithium iron phosphate sales reaching 136,000 tons, a 32.63% increase year-on-year. The sales of new product series have also gained recognition, indicating strong market insight and technological capability [2][3]. - The company is accelerating its integrated operations, focusing on resource acquisition, precursor production, and battery recycling, which is expected to lower costs and enhance competitiveness [3]. Financial Forecasts - Revenue projections for 2024-2026 are 29.6 billion, 40.74 billion, and 55.28 billion yuan, with year-on-year changes of -28.4%, +37.6%, and +35.7% respectively. Net profit forecasts are 1.19 billion, 2.0 billion, and 2.97 billion yuan, with year-on-year changes of -24.6%, +67.8%, and +48.4% respectively [3][4]. - The current stock price corresponds to a price-to-earnings ratio of 20, 12, and 8 for 2024-2026 [4].