Jiangsu HSC New Energy Materials (688353) 海通证券·2024-05-12 03:32Investment Rating - The report maintains an "Outperform the Market" rating for the company [15]. Core Views - The company is actively advancing project construction to support rapid development, with several key projects underway that are expected to enhance performance once completed [4]. - The company has faced significant revenue declines in 2023, with a reported revenue of 525 million yuan, down 39.09% year-on-year, and a net profit loss of 24 million yuan, a decrease of 109.17% year-on-year [3]. - Future profitability is projected to improve significantly, with net profits expected to reach 19 million yuan in 2024, 86 million yuan in 2025, and 204 million yuan in 2026, alongside a recovery in revenue growth [5][6]. Financial Summary - In 2023, the company reported total revenue of 525 million yuan, with a year-on-year decline of 39.1%. The net profit was -24 million yuan, reflecting a 109.2% decrease [6]. - For 2024, the company is expected to generate revenue of 858 million yuan, a 63.3% increase, and a net profit of 19 million yuan, marking a turnaround from losses [6]. - The earnings per share (EPS) are projected to improve from -0.15 yuan in 2023 to 0.12 yuan in 2024, and further to 1.28 yuan by 2026 [5][6]. Project Development - The company is focusing on several key projects, including the construction of a 6,000-ton carbonates project and a 2000-ton methane sulfonic acid project, which are expected to significantly boost production capacity and performance [4]. - The company has also increased its R&D investment, reaching 47.46 million yuan in 2023, which is 9.04% of its revenue, indicating a strong commitment to technological advancement and innovation [17]. Valuation - The report estimates a reasonable value range for the company's stock between 32.72 yuan and 35.06 yuan based on a price-to-book ratio (PB) of 1.4-1.5 times and a book value per share (BPS) of 23.37 yuan for 2024 [5].