EASPRING(SZ:300073) Changjiang Securities·2024-05-14 02:02Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a significant decline in revenue and net profit for Q1 2024, with revenue at 1.517 billion yuan, down 68% year-on-year, and net profit at 110 million yuan, down 74% year-on-year [6][7]. - The decrease in product prices is attributed to falling resource prices and adjustments in customer structure, impacting profitability, particularly for ternary cathode products [7]. - The company is focusing on expanding its domestic business while maintaining relationships with international clients, with over 70% of its previous sales coming from international markets [7]. - The construction of a new production base in Finland is progressing, with an initial capacity of 60,000 tons [7]. Financial Summary - For Q1 2024, the company achieved total revenue of 1.517 billion yuan, a 68% decrease from the previous year, and a net profit of 110 million yuan, a 74% decrease [6]. - The projected financials for the upcoming years show a gradual recovery, with expected revenues of 13.887 billion yuan in 2024, 17.358 billion yuan in 2025, and 21.351 billion yuan in 2026 [13]. - The gross profit margin is expected to decline from 18% in 2023 to 16% in 2024, reflecting the challenges in maintaining profitability amid market fluctuations [13].