NBSS(SH:600884) Changjiang Securities·2024-05-28 04:31Investment Rating - The report maintains a Buy rating for ShanShan Co Ltd (600884 SH) [4] Core Views - ShanShan Co Ltd reported a revenue of 19 07 billion yuan in 2023, a year-on-year decrease of 12 13%, with net profit attributable to the parent company dropping by 71 56% to 765 million yuan [5] - The company's negative electrode business achieved sales of 264 000 tons, a year-on-year increase of 44 55%, but the gross margin decreased by 10 36 percentage points to 11 77% due to oversupply and intense competition in the domestic market [6] - The polarizer business saw sales of 140 million square meters, a year-on-year increase of 10 18%, with a gross margin of 19 52%, down 7 18 percentage points due to industry fluctuations [6] - In Q1 2024, the company reported a revenue of 3 752 billion yuan, a year-on-year decrease of 15 67%, with a net loss of 73 million yuan [5] - The company is expanding its negative electrode production capacity, with new bases in Sichuan and Yunnan, and is actively developing overseas projects, such as the 100 000-ton negative electrode project in Finland [6] Financial Performance - In 2023, the company's operating income was 19 07 billion yuan, with a gross profit of 3 093 billion yuan, accounting for 16% of revenue [10] - The company's net profit attributable to the parent company in 2023 was 765 million yuan, with an EPS of 0 35 yuan [10] - For 2024, the company is expected to achieve an operating income of 20 636 billion yuan, with a net profit attributable to the parent company of 832 million yuan and an EPS of 0 37 yuan [10] Business Outlook - The company is focusing on new technologies in the negative electrode sector, such as fast charging, silicon carbon, and hard carbon, while optimizing its business structure by divesting non-core businesses like clothing, finance, and charging piles [6] - The company's negative electrode market share remains high, but it faces pressure from industry price fluctuations and seasonal factors affecting production costs [6]