Sinomine(002738) Huaan Securities·2024-11-08 05:54Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance is under short-term pressure, but lithium salt costs are expected to continue decreasing [1] - In Q3 2024, the company reported a significant decline in revenue and net profit, with total revenue of 11.48 billion yuan, down 18.25% year-on-year, and a net profit of 727.63 million yuan, down 87.18% year-on-year [2][3] - Lithium salt production and sales have significantly increased, with self-owned mines achieving lithium salt sales of 11,100 tons in Q3 2024, and a total of approximately 28,000 tons in the first three quarters [2][3] - The cesium and rubidium salt segment has seen a gross profit increase, with Q3 2024 revenue of 258 million yuan and a gross profit of 186 million yuan, reflecting a year-on-year gross profit increase of 10.63% [2][3] - The company plans to invest in a lithium sulfate plant in Zimbabwe, which is expected to further reduce lithium salt production costs [2] Financial Performance Summary - For 2024, the company is projected to have a net profit of 797 million yuan, with a year-on-year decline of 63.9% [3][5] - Revenue for 2024 is expected to be 4.904 billion yuan, down 18.4% year-on-year, with a gross margin of 34.7% [3][5] - The company's return on equity (ROE) is projected to be 6.6% in 2024, down from 18.1% in 2023 [3][5] - The earnings per share (EPS) for 2024 is estimated at 1.10 yuan [3][5]