GDHEC CO.,LTD(SH:600673)2024-05-28 04:00Investment Rating - The report initiates coverage with an "OUTPERFORM" rating, indicating an expectation of performance exceeding the market average [3][14]. Core Insights - The company is a leading domestic enterprise in electronic components, high-end aluminum foil, and energy materials, with core products including electrode foil for aluminum electrolytic capacitors, laminated foil, and battery aluminum foil [6][14]. - The company benefits from rising refrigerant prices, with a projected increase in third-generation refrigerant quotas, positioning it as a market leader [6][14]. - The production capacity and technology for electrode foil are globally leading, making the company the largest chemical foil factory in China [6][14]. - The company has the largest electronic optical foil processing base in China, with advanced production technology for air conditioning foil and hydrophilic foil [6][14]. - The company operates the largest chlor alkali chemical production base in Guangdong Province, serving multiple industries [6][14]. - The performance of energy material products, particularly lithium iron phosphate and ternary materials, shows significant advantages in various performance metrics [6][14]. - Profit forecasts indicate net profits of 1.126 billion, 1.559 billion, and 2.019 billion RMB for 2024 to 2026, respectively, with a target price of 9.71 RMB based on a 26x PE ratio for 2024 [6][14]. Financial Summary - The company's market capitalization is 25.98 billion RMB (approximately 3.59 billion USD) with a current share price of 8.62 RMB and a target price of 9.71 RMB [3][14]. - Expected revenue growth from 10.85 billion RMB in 2023 to 17.37 billion RMB in 2024, representing a 60% increase [5][11]. - The projected gross margin is expected to improve from 11.1% in 2023 to 15.1% in 2024 [11][13].