Investment Rating - The investment rating for the company is maintained as "Buy" [7][8] Core Views - The company reported a significant decline in revenue and net profit for 2024, with revenue at 13.063 billion RMB (down 67.75% YoY) and a net loss of 7.905 billion RMB (down 208.32% YoY) [1][2] - Despite the losses, the report suggests that multiple adverse factors affecting the company may have been largely resolved by 2024, allowing for a more favorable outlook moving forward [1] - The company is expected to continue expanding its production capacity and is positioned well within the global lithium supply chain [3] Summary by Sections Financial Performance - In 2024, lithium ore production was 141,000 tons (down 7.35% YoY) and sales were 74,000 tons (down 12.5% YoY), while lithium salt production and sales increased significantly to 71,000 tons (up 39.44% YoY) and 103,000 tons (up 81.46% YoY) respectively [2] - The company’s Q4 revenue was 2.999 billion RMB (down 57.79% YoY, down 17.76% QoQ) with a net loss of 2.203 billion RMB (down 174.98% YoY, down 344.51% QoQ) [1] Production and Capacity Expansion - The company plans to advance the construction of its third chemical-grade lithium plant and continue ramping up production at its existing facilities, including the Kunana plant and Jiangsu Zhangjiagang base [3] - The company is focusing on four key research areas: comprehensive utilization of mineral resources, new lithium extraction technologies, next-generation battery materials, and battery recycling [3] Earnings Forecast and Valuation - The earnings per share (EPS) estimates for 2025, 2026, and 2027 are projected to be 1.19 RMB, 1.90 RMB, and 2.55 RMB respectively, reflecting a downward adjustment due to unexpected declines in lithium prices [4] - The target price for the company is set at 33.69 RMB, with a price-to-book (PB) ratio of 1.26 for 2025 [4][7]