SUNSTONE(SH:603612) Huafu Securities·2024-05-09 01:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [13]. Core Views - The company experienced a decline in pre-baked anode prices in 2023, leading to pressure on performance, but there are signs of recovery in 2024 with stable pricing and production capacity expansion [1][3]. - The company reported a total revenue of 15.31 billion yuan in 2023, a decrease of 21.1% year-on-year, and a net loss attributable to shareholders of 723 million yuan, a decline of 179.9% [2]. - For Q1 2024, the company achieved a revenue of 3.11 billion yuan, down 26.4% year-on-year, but the net profit attributable to shareholders improved significantly, showing an increase of 84.5% year-on-year [2]. Summary by Sections Production and Sales - In 2023, the company produced 2.96 million tons of pre-baked anodes, a year-on-year increase of 10.3%, and sold 2.98 million tons, also up 10.5% year-on-year [1]. - The company plans to expand its pre-baked anode production capacity to 3.46 million tons in 2024, with an expected output of 3.3 million tons [3]. Pricing Trends - The average price of pre-baked anodes in East China for 2023 was 6,286.9 yuan per ton, down 23.2% year-on-year, while the price stabilized in Q1 2024 at 5,087.6 yuan per ton, a decrease of 34.1% year-on-year [1][2]. - The price of high-end artificial graphite anode materials remained stable at 58,000 yuan per ton in March 2024 [2]. Financial Performance - The company reported a gross profit of 250 million yuan in 2023, down from 2.32 billion yuan the previous year, primarily due to declining prices [1]. - For Q1 2024, the gross profit improved to 310 million yuan, an increase of 240 million yuan year-on-year [2]. - The forecast for net profit attributable to shareholders for 2024-2026 is 820 million, 970 million, and 1.01 billion yuan, respectively, with corresponding EPS of 1.5, 1.8, and 1.9 yuan [3].