Core Viewpoint - Nissan is facing significant financial challenges, with projected losses for the fiscal year 2024 reaching up to 750 billion yen, marking the highest loss in its history due to declining sales, particularly in North America, and the impact of U.S. tariff policies [1][2]. Financial Performance - For the fiscal year 2024, Nissan anticipates a consolidated loss of 700 to 750 billion yen, a stark contrast to the previous year's profit of 426.6 billion yen [1]. - The company's operating profit is expected to be 85 billion yen, a decrease of 85% year-on-year, and lower than previous forecasts by 35 billion yen [2]. - Global sales for fiscal year 2024 are projected to be 3.35 million units, a 3% decline compared to the previous year, falling short of the initial target by 50,000 units [1]. Structural Reforms - Nissan is undergoing fundamental structural reforms, including a plan to reduce production capacity by 20% (1 million units) and lay off 9,000 employees [2]. - The company plans to cut 2,500 jobs in global management and 6,500 in factories, along with the closure of three global plants [2][3]. Leadership Changes - The new CEO, Ivan Espinosa, who took office in April, emphasized the need for asset reassessment and the impact of restructuring costs on the company's financials [2][3]. - The previous president, Makoto Uchida, resigned in March due to poor performance and failed merger talks with Honda [3].

Investment Rating - The investment rating for the company is "Buy" with an expectation of a relative increase in stock price of over 20% compared to the market benchmark index within the next six months [16]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with revenue at 13.063 billion yuan, down 67.75% year-on-year, and a net loss of 7.905 billion yuan, a decrease of 208.32% year-on-year. The primary reason for this decline was the termination of the Quinan lithium hydroxide project, leading to a full impairment of assets worth 2.114 billion yuan [3][5]. - The production and sales of lithium concentrate showed a decrease in Q4 2024, with production at 392,000 tons (down 3.3% quarter-on-quarter) and sales at 312,000 tons (down 20.3% quarter-on-quarter) [4]. - The average selling price of lithium concentrate in Q4 2024 was 736 USD/ton, reflecting a 15.6% decrease quarter-on-quarter [4]. - The company anticipates a gradual recovery in net profit from 1.616 billion yuan in 2025 to 3.38 billion yuan in 2027, with corresponding PE ratios of 31, 17, and 15 [5]. Financial Data Summary - For 2024, the company achieved a revenue of 13.063 billion yuan, with a year-on-year growth rate of -68%. The net profit was -7.905 billion yuan, with a growth rate of -208% [6]. - The average cash production cost for lithium concentrate in 2024 was 326 AUD/ton, an increase of 14.59% year-on-year [5]. - The company’s inventory of lithium concentrate decreased by 26.9% year-on-year, indicating ongoing inventory digestion [5].