ZHmag(300224) 民生证券·2024-03-29 16:00Investment Rating - The report maintains a "Recommend" rating for the company, with expected EPS of 0.59/0.68/0.78 yuan per share for 2024-2026, and corresponding PE ratios of 19/17/14X [23][50] Core Views - The company's revenue in 2023 was 5.87 billion yuan, a year-on-year decrease of 7.05%, while net profit attributable to the parent company increased by 10.74% to 448 million yuan [30][35] - The growth in net profit is mainly driven by the increase in gross profit, which rose by 153 million yuan year-on-year, primarily due to the significant growth in sales of NdFeB magnetic materials and components [30] - The company's product structure has been optimized, with high-margin NdFeB magnetic material components and drive motor magnets growing faster, contributing to an overall gross margin increase of 3.7 percentage points to 18.09% in 2023 [36][59] Financial Performance - The company's revenue from NdFeB magnetic materials in 2023 was 5.77 billion yuan, accounting for 98.2% of total revenue, with a gross profit of 1.033 billion yuan [6][7][11] - In 2023, the company's NdFeB magnetic material sales volume increased by 12% to 17,178 tons, and component sales surged by 476% to 404,700 units [31] - The automotive sector (including new energy vehicles) accounted for 66% of NdFeB sales, with a 19% year-on-year increase in sales volume to 11,345 tons [31][69] Capacity and Market Position - By the end of 2023, the company had an annual production capacity of 30,000 tons of NdFeB magnetic materials, with plans to reach 36,000 tons by 2026 [53][55] - The company has strengthened its raw material supply chain through a joint venture with China Rare Earth Group, ensuring 25% of its raw material supply [55] - The company's R&D advantages are evident, with three core technologies driving the development of low-heavy rare earth, heavy rare earth-free, and ultra-light rare earth magnet product lines [53][66] Industry Trends - The new energy vehicle sector continues to drive demand for NdFeB magnetic materials, with the company's automotive sector sales volume increasing by 19% in 2023 [31][69] - The company's drive motor magnet deliveries for energy-saving and new energy vehicles reached 4.49 million units, a 29% year-on-year increase [31] - Despite a 33.33% decline in the rare earth price index in 2023, the company's cost reduction and product structure optimization helped maintain profitability [36]