XWXN(SH:688778)2024-05-07 02:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock price will outperform the benchmark index by 10%-20% over the next 6-12 months [10][24]. Core Views - The company reported a significant decline in 2023 earnings, with a net profit of 527.45 million RMB, down 52.93% year-on-year, and revenue of 17.31 billion RMB, down 39.79% [2][3]. - The first quarter of 2024 showed a recovery in sales volume, particularly for new products, with a notable increase in the sales of ternary materials by 249.47% year-on-year [2][14]. - The company is actively pursuing new technology products, focusing on high-voltage and high-power performance in cobalt lithium and ternary materials, which are expected to drive future growth [2][3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 17.31 billion RMB, a decrease of 39.79% compared to 2022, and a net profit of 527.45 million RMB, down 52.93% [3][5]. - The first quarter of 2024 saw a profit of 111.29 million RMB, a slight decrease of 3.71% year-on-year, but a non-GAAP profit increase of 4.28% [2][14]. Sales and Product Development - The total sales volume of lithium battery cathode materials in 2023 was 72,000 tons, with cobalt lithium sales at 34,600 tons (up 4.15% year-on-year) and ternary materials at 37,400 tons (down 19.39% year-on-year) [2][3]. - The company is expanding its market share in cobalt lithium and ternary materials, with significant growth in sales volume in the first quarter of 2024 [2][14]. Future Outlook - The earnings forecast for 2024-2026 has been adjusted to 1.30 RMB, 1.69 RMB, and 2.14 RMB per share, reflecting a decrease in expected earnings due to increased competition and raw material price fluctuations [2][5]. - The company is expected to benefit from the ramp-up of new technology products, which could enhance performance in the coming years [2][3].