Jingu Financial News | Haitong International’s research report states that Ruipulan Jun (00666) was established in October 2017 and is an important core enterprise of Qingshan Industry in the field of new energy, mainly engaged in the research and development, production, and sales of lithium-ion batteries. Its products are mainly used in new energy vehicles, energy storage and other applications. In April 2019, the company achieved mass delivery of lithium batteries, and it went public on the Hong Kong Stock Exchange in December 2023, raising HKD 2.013 billion in funds for capacity expansion.
The bank stated that in terms of profitability, the company's overall gross margin in 2023 is 2.23%, a year-on-year decrease of about 5.3% from 2022. Gross profit decreased from CNY 880 million to CNY 190 million, a year-on-year decrease of 78%. When divided by sector, the gross margin of power batteries decreased from 3.1% in 2022 to -3.1%, indicating a loss; the gross margin of energy storage batteries decreased from 8.7% in 2022 to 4.7% in 2023. The company's net income attributable to shareholders in 2023 further expanded its loss to CNY 1.472 billion, compared with a loss of CNY 352 million in the same period in 2022, and its profitability further weakened.
The bank expects the company's main revenue for FY24-26 to be CNY 15.025/25.749/40.737 billion, with corresponding net losses of CNY 2.161/-2.586/-1.925 billion and corresponding EPS of -7.04/-8.42/-6.27. As the company is in the early stages of capacity expansion and has not yet achieved profitability, the bank uses the industry average price-to-book ratio for valuation. As of May 24, 2024, the Wind Lithium Battery Index P/B ratio is 2.7, and calculated using 2.7, the bank's target price is HKD 14.77 per share. It is the first coverage with a "Neutral" rating.