Hengdian East Magnetic released the 2023 annual report and the 2024 quarterly report. In 2023, the company achieved operating income of 197.Missionbingo.2.1 billion yuan, year-on-year + 1.39%, realized net profit of 1.816 billion yuan, + 8.80% year-on-year; Q4 in 2023, realized operating income of 3.964 billion yuan, year-on-year-25.58%, month-on-month-28.09%, realized return-home net profit of 166 million yuan, year-on-year-63.97%, month-on-month-62.04%. 24Q1 achieved revenue of 4.233 billion yuan, year-on-year-8.60%, month-on-month + 6.81%; net profit of 353 million yuan, year-on-year-39.40%, month-on-month + 112.51%. The profitability of photovoltaic business Q1 is higher than expected: in 2023, the price of photovoltaic industry chain fluctuates sharply, and the industry chain shows increment and does not increase income.MissionbingoIn the case of the company's photovoltaic industry, the revenue was 12.777 billion yuan in 2023, the profit nearly doubled compared with the same period last year, and the total shipment was about 10GW, an increase of 24.27% over the same period last year. We estimate that the company's component shipments are expected to reach 15GW in 2024, with more than 80% of N-type shipments. In 2024, Q1 company's photovoltaic industry achieved an income of 2.35 billion yuan and shipped 3.6GW, an increase of 71% over the same period last year, and its profitability exceeded market expectations. The main reason is that the company adopts a differentiation strategy, and the distribution proportion is high, and the price per watt is higher than the market price. Lithium business shipments are growing rapidly: revenue of 2.051 billion yuan in 2023, an increase of 31.38% over the same period last year. 340 million units were shipped, an increase of 75.36% over the same period last year. In the energy production side, the company's new 6GWh project was completed and put into production, and achieved a good capacity to climb the slope. In 2024, the Q1 lithium battery industry achieved an income of 500 million yuan and shipped nearly 110 million units, an increase of 94 percent over the same period last year. The business of magnetic devices has grown steadily: in 2023, revenue reached 4.483 billion yuan, and magnetic materials shipped 198500 tons, an increase of 7.87 percent over the same period last year. In the energy production side, the company has increased the layout of advanced production capacity in our department, Guangxi, Vietnam and other places. In 24 years of Q1, the company's magnetic material plate achieved an income of 1.03 billion yuan and a shipment volume of 51000 tons, an increase of 25% over the same period last year. Investment suggestion: the company's 24-26 net profit is expected to be 1.889, 2.284, 2.655 billion yuan, year-on-year + 4.0%, 20.9, 16.3, respectively, 1.16, 1.40, 1.63, respectively, maintaining the "overweight" rating. Risk hint: product competition aggravates risk, industry overcapacity risk, overseas tariff policy risk [disclaimer] this article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.