CNGR(SZ:300919) Guotai Junan Securities·2024-04-28 06:02Investment Rating - The investment rating for Zhongwei Co., Ltd. (300919) is maintained at "Buy" [1][2] - The target price is set at 58.68, revised up from the previous forecast of 57.60 [1][2] Core Views - The company's performance is in line with expectations, with ongoing integration efforts expected to drive growth [1] - The company is anticipated to achieve a rise in both volume and profit in 2024, supported by its comprehensive product offerings in nickel, cobalt, phosphorus, and sodium [1] - The report highlights the company's leading position in the precursor market, with a market share of 27% in 2023, and a continued strong demand from domestic and international clients [1][2] Financial Performance Summary - In 2023, the company achieved a revenue of 34.27 billion, a year-on-year increase of 13.0%, and a net profit of 1.95 billion, up 26.2% [1][2] - The first quarter of 2024 saw a net profit of 379 million, reflecting an 11.2% year-on-year increase [1] - The earnings per share (EPS) for 2024 is projected at 3.26, with a long-term view suggesting a potential increase to 4.64 by 2026 [1] Market Position and Strategy - The company has established a comprehensive product system for precursors, which is expected to drive continuous performance growth [1] - The integration of the supply chain and expansion into overseas markets are expected to enhance the company's competitive edge [1] - The report notes that the company has successfully launched new production lines that will improve its self-sufficiency in nickel resources and reduce raw material costs [1] Financial Forecasts - Revenue is projected to reach 44.85 billion in 2024, with a continued upward trend expected in subsequent years [2] - The operating profit is forecasted to grow from 3.03 billion in 2023 to 4.11 billion in 2024 [2] - The net profit is expected to increase to 2.18 billion in 2024, with a further rise to 2.59 billion in 2025 [2]