CNGR(300919) 长江证券·2024-11-18 08:48Investment Rating - The investment rating for Zhongwei Co., Ltd. is "Buy" and is maintained [5]. Core Views - The report highlights that Zhongwei Co., Ltd. achieved a revenue of 30.163 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 15.17%. However, the net profit attributable to shareholders decreased by 4.54% to 1.324 billion yuan. The third quarter revenue was 10.077 billion yuan, up 12.91% year-on-year but down 6.64% quarter-on-quarter. The net profit for Q3 was 460 million yuan, down 25.68% year-on-year and 5.24% quarter-on-quarter [5][6]. Summary by Sections Revenue Performance - In Q3 2024, the company experienced a decline in shipments of ternary and four-cobalt precursors due to decreased end-user demand, while phosphate iron shipments saw a significant increase [6]. Profitability Analysis - The report indicates that the single-ton non-recurring profit in Q3 decreased due to nickel price fluctuations. The self-supply of nickel intermediates was affected by seasonal rains, and the profitability of nickel products was reduced due to falling nickel prices. However, the profitability level of precursors remained stable [6]. Financial Metrics - The company reported a Q3 expense ratio of 8.55%, an increase of 2.04 percentage points quarter-on-quarter. The operating cash flow improved significantly, reaching 1.564 billion yuan, a year-on-year increase of 23.52% and a quarter-on-quarter increase of 199.02% [6]. Future Outlook - The company is expanding its production capacity, with ongoing construction of overseas bases in South Korea and Morocco, which is expected to support sales growth in 2025. The report anticipates that the smelting layout will continue to develop, contributing to an increase in the self-supply ratio of intermediates and enhancing profitability [7].