Ronbay Technology(688005) 长江证券·2024-11-18 08:48Investment Rating - The investment rating for the company is "Buy" and it is maintained [5]. Core Insights - The company reported a revenue of 11.32 billion yuan for the first three quarters of 2024, a year-on-year decrease of 39.04%. The net profit attributable to shareholders was 116 million yuan, down 81.1% year-on-year. In Q3 2024, the company achieved a revenue of 4.44 billion yuan, a year-on-year decline of 21.91%, but a quarter-on-quarter increase of 38.79%. The net profit attributable to shareholders for Q3 was 106 million yuan, down 55.15% year-on-year, but up 123.31% quarter-on-quarter [2][5]. Summary by Sections Revenue Performance - In Q3 2024, the company experienced significant growth in shipments of ternary cathodes and precursors, primarily driven by unexpected expansion of overseas customers and accelerated progress at the Korean base. The overall gross margin for Q3 was 11.15%, continuing to improve quarter-on-quarter. The operating net profit per ton for ternary cathodes is expected to have significantly increased compared to Q2, attributed to higher utilization rates and a greater proportion of overseas customers, which enhances profitability [6][7]. Financial Metrics - The expense ratio for Q3 2024 was 6.69%, with R&D expense ratio at 3.01%, reflecting an increase due to heightened investment in solid-state batteries and other advanced materials. The company recorded an asset impairment loss of 54 million yuan, mainly due to inventory depreciation, while credit impairment reversals amounted to 5 million yuan, leading to a net profit margin of 2.39%, which continues to improve [6][7]. Future Outlook - For Q4 and beyond, the company is expected to maintain strong shipment momentum, with overseas customers continuing to increase their orders. The production capacity at the Korean base is anticipated to ramp up, with overseas customer contributions expected to stabilize around 20%. Looking towards 2025, the company aims for an annual shipment growth rate exceeding 20%, with the overseas customer share projected to rise to 30%, and a long-term target of 50%. The company is also actively developing new generation sodium-ion and solid-state battery cathodes, which are expected to open new growth avenues for profitability [7].