Hubei Wanrun New Energy Technology (SH:688275) Soochow Securities·2024-05-01 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [9] Core Views - The company is expected to see a narrowing of losses in Q1 2024, with a forecast for profitability recovery in H2 2024, and a return to breakeven in 2024, with profits projected to exceed 0.1 million in 2025 [2][9] - The average price of lithium iron phosphate (LiFePO4) in 2023 is 83,000 yuan per ton, down 49% year-on-year, with Q1 2023 unit net profit at -0.9 thousand yuan per ton, improving to -0.4 thousand yuan per ton in Q1 2024 [2] - The company is bound to major clients like CATL and BYD, ensuring stable demand despite current market pressures [9] Financial Summary - Revenue for 2023 is projected at 12.174 billion yuan, a decrease of 1.44% year-on-year, with a net loss of 1.504 billion yuan, reflecting a 256.84% decline [26] - The company’s operating cash flow for 2023 is expected to be -1.558 billion yuan, with a significant increase in Q1 2024 to 635 million yuan [6][19] - The company’s total assets are projected to be 19.432 billion yuan in 2023, with total liabilities at 12.840 billion yuan, resulting in equity of 6.592 billion yuan [12] Production and Sales Outlook - The company’s lithium iron phosphate shipments in 2023 reached 164,000 tons, a year-on-year increase of 78%, with Q1 2024 shipments expected to grow by over 40% from Q1 2023 [27] - The total production capacity is expected to reach 360,000 tons by the end of 2024, with annual shipments projected to be between 200,000 to 250,000 tons, reflecting a growth of approximately 40% [27]