Keda Group(SH:600499) EBSCN·2024-05-05 10:07Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company reported a total revenue of 2.56 billion yuan and a net profit attributable to shareholders of 310 million yuan for Q1 2024, reflecting a year-on-year increase of 2.8% in revenue but a decline of 22.6% in net profit [2][3]. - The overseas building materials segment is under short-term pressure, but an increase in production and price hikes are expected in the future [3]. - The company has seen a significant increase in orders for ceramic machinery, with overseas orders rising from 55% at the end of 2023 to 65% in Q1 2024 [3]. - The lithium carbonate production and sales have also increased, with the company’s stake in Blue Lithium achieving a production volume of 8,700 tons and sales of 9,900 tons, marking a year-on-year increase of 38% and 607% respectively [3]. - The gross profit margin and net profit margin for Q1 2024 were reported at 26.9% and 15.9%, showing a decline of 5.4 and 6.5 percentage points year-on-year [3]. Summary by Sections Financial Performance - For 2024E, the company is projected to achieve a revenue of 12.26 billion yuan, with a growth rate of 26.43% compared to 2023 [5]. - The net profit attributable to shareholders is forecasted to be 1.92 billion yuan for 2024E, reflecting a decrease of 8.11% from 2023 [5]. - The earnings per share (EPS) for 2024E is estimated at 0.99 yuan, with a return on equity (ROE) of 14.92% [5]. Operational Insights - The company is expanding its overseas building materials capacity, with projects in Kenya, Cameroon, Tanzania, Peru, and Ivory Coast progressing [3]. - The financial expenses have significantly decreased, contributing to a positive operating cash flow of 100 million yuan in Q1 2024 [3]. Market Position - The company is leveraging its global sales network and multi-product chain to enhance its market position, particularly in Europe following the acquisition of Italian companies [3]. - The report indicates that the competitive landscape is expected to improve, which may lead to a recovery in profitability for the overseas building materials segment [3].