Azure(SZ:002245) Haitong Securities·2024-05-31 03:01Investment Rating - The investment rating for the company is "Outperform the Market" [1][11]. Core Insights - The company is expected to recover from losses in 2024, with a significant improvement in profitability driven by the lithium battery business, which is projected to achieve both volume and profit growth [4][11]. - The company reported a revenue of 1.43 billion yuan in Q1 2024, a year-on-year increase of 46.77%, and a net profit of 70.67 million yuan, marking a turnaround from losses [4]. - The lithium battery segment is anticipated to exceed 400 million units in shipments for the year, with a focus on various applications including electric tools and two-wheeled vehicles [5][7]. Financial Summary - Revenue is projected to grow from 5.22 billion yuan in 2023 to 6.54 billion yuan in 2024, representing a year-on-year increase of 25.3% [6][23]. - Net profit is expected to rise significantly from 141 million yuan in 2023 to 464 million yuan in 2024, reflecting a growth rate of 229.2% [6][23]. - The gross margin is forecasted to improve from 12.8% in 2023 to 14.8% in 2024 [6][23]. Business Segments - The lithium battery business is projected to see a recovery in orders, with expected shipments of 400 million units in 2024, and an increase in gross margin to 15% [7][11]. - The LED business is anticipated to maintain a revenue growth rate of 10% annually, with a stable gross margin of 13% [13][22]. - The metal logistics segment is expected to grow at a rate of 10% per year, maintaining a gross margin of 15.5% [22]. Valuation - The company is valued at a price-to-earnings (P/E) ratio of 23-25 for 2024, with a corresponding fair value range of 9.26 to 10.06 yuan per share [11].