incident. The company released its 2023 annual report and 2024 quarterly report. Revenue in 2023 was $34.273 billion, up 12.95% year on year; net profit to mother was $1,947 billion, up 26.15% year on year; net profit after deduction was 1,587 billion yuan, up 43.13% year on year; net operating cash flow was RMB 4.385 billion, up +188.53% year on year. Revenue for the first quarter of 2024 was 9.292 billion yuan, up 17.58% year on year; net profit to mother was 379 million yuan, up 11.19% year on year; net profit after deduction was 340 million yuan, up 34.64% year on year; net operating cash flow was 782 million yuan, +188.08% year on year.
The product customer card position is good, and the leading position is stable. In terms of products, technology has accumulated deep, forming a diversified product matrix of new energy materials such as nickel, cobalt, phosphorus, and sodium. In 2023, the company shipped more than 270,000 tons of various materials, with a market share of 27%, ranking first in the industry. On the customer side, we continued our global strategy, including establishing close partnerships with leading domestic and foreign customers such as Tesla, Samsung SDI, LG Chem, SK On, Panasonic, ECOPRO, POSCO, Ningde Times, and Rongbai Technology. Overseas revenue accounted for around 40% of that year.
Diversification of production capacity, speeding up overseas. At the end of 2023, it will be built with nearly 400,000 tons/year of ternary precursor production capacity, 25,000 tons/year of cobalt tetroxide production capacity, and 200,000 tons/year of iron phosphate production capacity. Meanwhile, construction of industrial bases in South Korea and Morocco is progressing in an orderly manner, gradually improving the global layout. It is planned to build 50,000 gold tons of battery-grade nickel sulfate and 110,000 tons of precursor materials in Korea. This is the industry's first “nickel+precursor” joint venture project (POSCO), and the first overseas refining and precursor integrated industrial base built by the company. A joint venture was set up in Morocco to build a recycling capacity with an annual output of 120,000 tons of ternary precursors, an annual output of 60,000 tons of lithium iron phosphate, and an annual treatment of 30,000 tons of black powder to better meet the needs of European and American new energy vehicles.
Integration is gradually being implemented, and performance is expected to increase. The company firmly implements an integrated strategy and has mastered the dual technology routes of oxygen-rich side blowing and RKEF. Nickel resources are under construction and the production capacity of the resource refining terminal has reached 195,000 metal tons.
The Emerald Bay Project and the Debon Project have been completed and put into operation, all of which have achieved an annual output of 55,000 gold tons of low-ice nickel after delivery, increasing the self-supply rate of nickel resources. The company acquired 60% of PT NNI's shares. The latter is one of the main subjects of the RKEF Fire and Ice Nickel Production Line project in the Delong Phase III Industrial Park project. It has 8 RKEF low ice nickel production lines in Indonesia. Low-ice nickel is an important raw material for preparing nickel sulfate, and the gradual commissioning of the project can effectively increase the degree of integration. Furthermore, the company's world's first low-ice nickel preparation high-ice nickel OESBF production line officially entered the process optimization and production capacity climbing phase at the Qinzhou base. As integrated projects continue to be implemented, the company's ability to guarantee the supply of raw materials and reduce costs is expected to be strengthened, and the long-term profit center is expected to increase.
Investment advice: We expect the company to achieve revenue of 386.2, 438.4 and 5010 billion yuan in 2024-2026, with year-on-year changes of +12.7%, +13.5%, and +14.3%; net profit to mother of 22.6, 27.2, and 3.31 billion yuan, with year-on-year changes of +16.0%, +20.3%, and +21.7%. The current stock price corresponds to the 2024-2026 price-earnings ratio of 15, 13, and 10 times, respectively. Considering the further promotion of the company's internationalization+integration, the “recommended” rating is maintained.
Risk warning: NEV sales fall short of expectations, overseas production capacity construction falls short of expectations, etc.