HNZK Electric.(SZ:300035) Huafu Securities·2024-05-06 02:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 20% relative to the market benchmark index within the next six months [6][12]. Core Insights - The company reported a revenue of 1.066 billion yuan in Q1 2024, showing a year-on-year increase of 2% but a quarter-on-quarter decrease of 23%. The expected shipment volume is close to 40,000 tons, representing a year-on-year increase of 63% [1]. - The company plans to invest in a 100,000-ton integrated anode production base in Morocco, with a total investment not exceeding 5 billion yuan. This project aims to support the localization requirements for electric vehicles in Europe and the U.S. [1]. - The company has repurchased shares worth 350 million yuan, which will be used for cancellation and reduction of registered capital, enhancing returns for existing shareholders [1]. Financial Data Summary - The company’s revenue for 2023 was 4.908 billion yuan, a decrease of 7% year-on-year, with a net profit attributable to shareholders of 42 million yuan, down 89% year-on-year. The gross margin was 15% and the net margin was 0.2% [16]. - The forecast for 2024-2026 shows expected net profits of 330 million yuan, 570 million yuan, and 790 million yuan respectively, with corresponding P/E ratios of 22, 12, and 9 [16]. - The target price is set at 11.85 yuan, based on a 15 times P/E ratio for 2025, reflecting the company's anticipated growth in shipment volume and cost control capabilities [16].