Jia Yuan Technology(SH:688388)2024-05-07 00:32Investment Rating - The investment rating for the company is "Accumulate," indicating an expectation that the company's stock price will outperform the benchmark index by 10%-20% over the next 6-12 months [1][25]. Core Views - The company reported a revenue of RMB 4.97 billion in 2023, representing a year-on-year growth of 7.06%. However, the net profit attributable to shareholders was only RMB 0.19 million, a significant decrease of 96.34% compared to the previous year [11][21]. - In Q1 2024, the company experienced a net loss of RMB 48 million, with a significant decline in gross margin and net margin compared to the same period last year [11][12]. - The company maintained growth in copper foil production and sales, with production reaching approximately 58,000 tons, a year-on-year increase of 9.69%, and sales of 57,600 tons, a growth of 17.47% [11][21]. - The company has established six production bases with an annual capacity of 100,000 tons, positioning itself among the top tier in the domestic lithium battery copper foil industry [11][21]. Financial Summary - The company's main revenue for 2022 was RMB 4.64 billion, which increased to RMB 4.97 billion in 2023, with projected revenues of RMB 6.37 billion, RMB 8.68 billion, and RMB 10.65 billion for 2024, 2025, and 2026 respectively [6][13]. - The EBITDA for 2023 was RMB 882 million, with projections of RMB 687 million for 2024, and increasing to RMB 1.02 billion and RMB 1.30 billion in 2025 and 2026 respectively [6][13]. - The net profit attributable to shareholders is projected to be a loss of RMB 19 million in 2024, followed by profits of RMB 210 million and RMB 369 million in 2025 and 2026 respectively [6][13]. - The company’s earnings per share (EPS) is expected to be -0.05 RMB in 2024, 0.49 RMB in 2025, and 0.86 RMB in 2026, reflecting a significant downward adjustment from previous forecasts [11][21].