TINCI(002709) Minsheng Securities·2024-10-27 15:05Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 18.72 CNY [1]. Core Views - The company is showing signs of a profit turning point, with an accelerated pace of internationalization. The third quarter report indicates a revenue of 3.38 billion CNY, down 26.90% year-on-year, and a net profit attributable to shareholders of 287 million CNY, down 83.23% year-on-year [1]. - The electrolyte segment is expected to see a bottoming out in profitability, with a shipment volume of approximately 136,000 tons, remaining stable quarter-on-quarter. The company is focusing on cost reduction and product structure optimization to enhance competitiveness [1]. - The company is advancing its overseas capacity construction, with projects in the U.S. and Morocco aimed at strengthening its global reach and better meeting customer demands [1]. Financial Performance Summary - For 2023, the total revenue is projected at 15,405 million CNY, with a significant decline of 30.97% year-on-year. The net profit attributable to shareholders is expected to be 1,891 million CNY, reflecting a decrease of 66.92% [2]. - The company anticipates a recovery in revenue growth starting in 2024, with expected revenues of 12,536 million CNY, representing a year-on-year decline of 18.62%, followed by a rebound of 28.01% in 2025 [2]. - The gross profit margin is projected to decrease to 25.92% in 2023, with a gradual recovery to 22.13% by 2026 [2]. Operational Insights - The company is implementing various cost reduction measures and improving production processes to enhance product competitiveness. The focus is on optimizing the production of lithium battery materials [1]. - The company has a leading position in the industry with its liquid lithium hexafluorophosphate technology, which has significantly lower unit production costs compared to industry averages [1]. - The report highlights the importance of the company's integrated layout and cost reduction strategies in improving profitability levels in the future [1].