Changjiang Securities·2024-05-20 04:32Investment Rating - The investment rating for the company is "Buy" and it is maintained [4]. Core Views - The company reported a revenue of 5.058 billion yuan in Q1 2024, which represents a year-on-year decrease of 46.41% and a quarter-on-quarter decrease of 31% [7][8]. - The net profit attributable to the parent company was -439 million yuan, a year-on-year decline of 118.31%, but a reduction in losses of 624 million yuan compared to the previous quarter [7][8]. - The non-recurring net profit attributable to the parent company was -254 million yuan, down 111.89% year-on-year, but also a reduction in losses of 1.422 billion yuan quarter-on-quarter [7][8]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a gross profit of 313 million yuan, which is an increase of 211 million yuan quarter-on-quarter, indicating an improvement in operational performance [8]. - The average price of battery-grade lithium hydroxide was 89,300 yuan per ton, down 31% quarter-on-quarter, while the average price of battery-grade lithium carbonate was 101,500 yuan per ton, down 28% quarter-on-quarter [8]. - The company recorded an investment net income of 259 million yuan in Q1 2024, which is an increase of 261 million yuan quarter-on-quarter, primarily from joint venture investments [8]. Market Outlook - The company is expected to enter a resource harvest period in 2024, with a continuous improvement in self-sufficiency and a potential decrease in comprehensive costs [9]. - The production costs of Mt Marion are expected to improve, and the ramp-up of low-cost salt lakes, along with the commissioning of the Goulamina project, will likely lead to an increase in self-sourced resource output [9].