Putailai(SH:603659) Tai Ping Yang·2024-05-27 05:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 15% compared to the CSI 300 index in the next six months [8]. Core Insights - In Q1 2024, the company achieved a net profit of 445 million, a year-on-year decrease of 36.64% but a quarter-on-quarter increase of 57.35%. The increase in net profit is attributed to a significant reduction in impairment provisions compared to Q4 2023 [4][6]. - The company’s Q1 revenue was 3.034 billion, reflecting a year-on-year decline of 17.97% and a quarter-on-quarter decline of 16.93% [4]. - The company is accelerating the construction of silicon-based anode capacity and expects to achieve mass production of composite current collectors soon. A project for an annual production of 12,000 tons of silicon-based anode materials is underway, with phased production expected to start in 2025 [4][6]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 15.902 billion, 20.492 billion, and 29.714 billion respectively, with year-on-year growth rates of 3.66%, 28.86%, and 45.01% [5]. - The projected net profits for the same years are 2.475 billion, 3.644 billion, and 5.388 billion, with growth rates of 29.50%, 47.21%, and 47.87% respectively [5]. - The earnings per share (EPS) are expected to be 1.16, 1.70, and 2.52 for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 15.22, 10.34, and 6.99 [5][6].