Dynanonic(SZ:300769) Great Wall Glory Securities·2024-04-30 09:30Investment Rating - The investment rating for the company is "Buy" [2][19]. Core Insights - The company reported a narrowing of unit losses in Q1 2024, with expectations of turning profitable for the full year. In Q1 2024, sales of phosphate-based cathode materials reached 45,000 tons, a year-on-year increase of 14%. The average price per ton was approximately 42,000 yuan, down 37,100 yuan from the average price in 2023. The net loss per ton was -430 yuan, with a gross profit of 30 yuan per ton, indicating a reduction in unit losses [2]. - The company has a production capacity of 495,000 tons per year for phosphate-based cathode materials and has established a 5,000 tons per year capacity for lithium supplement agents. In 2023, the company completed a production capacity of 265,000 tons per year for nano lithium iron phosphate, and part of the production capacity for the 110,000 tons per year lithium manganese iron phosphate project has been released [2][19]. - The company experienced a significant decline in performance in 2023, with revenue of 16.973 billion yuan, a year-on-year decrease of 24.76%, and a net profit attributable to shareholders of -1.636 billion yuan, down 168.74% [2][19]. Financial Summary - In Q1 2024, the company achieved revenue of 1.892 billion yuan, a year-on-year decrease of 61.74%, with a net profit attributable to shareholders of -185 million yuan, an increase of 74.25% year-on-year. The overall gross margin was 0.03%, an increase of 0.02 percentage points compared to Q1 2023 [2]. - The company’s operating cash flow turned positive in 2023, reaching 5.993 billion yuan, a year-on-year increase of 197.68%. However, in Q1 2024, the operating cash flow was -718 million yuan, showing an 8.38% year-on-year growth [18]. - The company has revised its profit forecast, expecting net profits attributable to shareholders of 181 million yuan, 567 million yuan, and 965 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.65 yuan, 2.03 yuan, and 3.45 yuan [19].