TGCF(301217) 华创证券·2024-05-12 00:32Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][14]. Core Insights - The company's profitability is under pressure due to a continuous decline in copper foil processing fees, which have decreased by 41.8% year-on-year to 25,000 CNY/ton in June 2023 and are projected to drop further to 16,000 CNY/ton in Q1 2024, a 51.2% year-on-year decline [1][14]. - Despite the challenges, the company achieved a steady growth in copper foil sales, reaching 43,000 tons in 2023, a 7.15% increase year-on-year, with lithium battery copper foil accounting for 33.8% of total revenue [2][14]. - The company has optimized its product structure, with 83.79% of lithium battery copper foil being 6μm or thinner, and a steady increase in the proportion of high-frequency and high-speed PCB copper foil [2][14]. Financial Performance Summary - In 2023, the company reported total revenue of 3.785 billion CNY, a year-on-year decrease of 2.3%, and a net profit attributable to shareholders of 17 million CNY, down 93.5% year-on-year [13][15]. - For Q1 2024, the company achieved revenue of 890 million CNY, a 4.5% year-on-year increase, but reported a net loss of 30 million CNY, a 206.7% decline compared to the previous year [13][15]. - The company maintains a strong cash position with monetary funds of 1.238 billion CNY and a debt-to-asset ratio of 22.20% as of Q1 2024, indicating financial stability despite the profitability challenges [13][14].