FULIN. PM(300432) 东吴证券·2025-01-28 01:39Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 22 CNY based on a 25x PE for 2025 [9]. Core Insights - The company is a leader in high-density lithium iron phosphate (LiFePO4) batteries, with a strong demand for its products and a stable growth trajectory in its automotive parts business [9]. - The report highlights the company's unique oxalic acid iron process, which provides significant advantages in product density and performance compared to competitors [9]. - The automotive parts segment is expected to grow rapidly, driven by partnerships with leading automotive manufacturers [9]. Summary by Sections Company Overview - The company specializes in automotive engine components, new energy vehicle intelligent control systems, and lithium iron phosphate cathode materials, being a pioneer in the oxalic acid iron technology route [12][17]. - The company has seen rapid growth in its lithium battery cathode materials business, with a significant increase in market share [18][21]. Lithium Iron Phosphate Market - The demand for lithium iron phosphate is expected to grow significantly, with a projected demand of 2.52 million tons in 2024, up 52% year-on-year, and 3.47 million tons in 2025 [30][32]. - The high-density products are in short supply, with only a few companies, including the report's subject, capable of meeting the demand [37]. Financial Performance - The company experienced rapid revenue growth from 2020 to 2022, but faced a decline in 2023 due to falling prices of lithium iron phosphate [21][23]. - The report forecasts a recovery in profitability, with net profits expected to reach 4.1 billion CNY in 2024, 10.8 billion CNY in 2025, and 15 billion CNY in 2026 [9][21]. Automotive Parts Business - The company holds a 20% market share in traditional automotive parts and is expanding its new energy components, with expected revenues of 50 billion CNY in 2025 [9][12]. - The report emphasizes the company's strong relationships with major automotive manufacturers, which will drive growth in this segment [9]. Robotics and Future Prospects - The company is also venturing into robotics, with a projected market potential of 150 to 250 billion CNY by 2035 [9][12]. - The report indicates that the company's strategic positioning in high-density lithium iron phosphate and automotive parts will provide a dual growth engine moving forward [9].