LZJT(SZ:300428) INDUSTRIAL SECURITIES·2024-04-28 06:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on expected performance relative to market indices [20][22]. Core Insights - The company's main business continues to improve, with a focus on the growth of its non-heat-treated aluminum products and new material projects [5][22]. - The company reported a revenue of 23.365 billion yuan in 2023, a year-on-year increase of 9.33%, and a net profit attributable to shareholders of 606 million yuan, up 22.98% year-on-year [12][19]. - The report highlights the successful development and patenting of non-heat-treated materials, which have reduced costs by 15%-20% and are expected to drive growth in the automotive lightweighting market [5][22]. Financial Performance Summary - The company is projected to achieve revenues of 25.927 billion yuan in 2024, with a year-on-year growth of 11.0%, and a net profit of 865 million yuan, reflecting a significant increase of 42.9% [6][22]. - The gross profit margin is expected to remain stable around 10.5% to 10.1% over the next few years, with a return on equity (ROE) projected to increase from 9.1% in 2023 to 12.4% by 2026 [6][22]. - Earnings per share (EPS) are forecasted to grow from 0.97 yuan in 2023 to 1.86 yuan in 2026, indicating strong profitability growth [6][22]. Business Segment Analysis - The casting aluminum alloy segment is expected to see increased sales volume, with a reported 11.49% year-on-year growth in 2023, achieving a sales volume of 933,200 tons [11][22]. - The aluminum wheel segment also showed robust growth, with sales increasing by 21.28% year-on-year, reaching 21.2 million units sold in 2023 [11][22]. - The functional intermediate alloy segment is gradually expanding, with a slight increase in sales volume and a stable profit margin, indicating a balanced growth across all business areas [11][22]. Future Growth Drivers - The company is set to benefit from the rapid adoption of integrated die-casting technology in the electric vehicle sector, which is expected to enhance demand for its non-heat-treated alloys [5][22]. - The lithium battery materials project is anticipated to create a new growth avenue, with an initial capacity of 34,000 tons planned, contributing to the company's diversification strategy [13][22]. - Overall, the combination of traditional business growth and new material projects positions the company well for future performance improvements [22].