Yahua Group(002497) 长江证券·2024-06-07 07:01Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a net profit attributable to shareholders of 0.15 billion yuan in Q1 2024, a year-on-year decrease of 97.48%, but a quarter-on-quarter turnaround to profitability; the non-recurring net profit was 0.08 billion yuan, down 98.64% year-on-year, but also a quarter-on-quarter recovery to profitability [4][21] - The company is expanding its smelting capacity and has successfully launched its own mining project, enhancing resource security [5] - The cost pressure from raw materials has eased, leading to an improvement in profitability, with a gross margin of 9.25% in Q1 2024, up 5.75 percentage points quarter-on-quarter [8] Summary by Sections Financial Performance - In Q1 2024, the company achieved a total revenue of 0.15 billion yuan, with a significant year-on-year decline but a recovery from previous losses [21] - The average price of battery-grade lithium hydroxide was 89,300 yuan per ton, down 31.05% quarter-on-quarter, while battery-grade lithium carbonate averaged 101,500 yuan per ton, down 27.76% quarter-on-quarter [8] Production and Resource Management - As of the end of 2023, the company had a lithium salt production capacity of 73,000 tons per year and is actively planning capacity expansion [5] - The Kamativi mine's first phase has been successfully put into production, with the first batch of lithium concentrate shipped back to China in 2024 [5] Customer Relationships - The company has established long-term procurement agreements with major clients, including CATL and Tesla, ensuring a stable demand for its products [22]