On May 31, Guolonghui reported that Haitong Securities' research report pointed out that Zhejiang Huayou Cobalt (603799.SH) achieved a net profit of 520 million yuan attributable to shareholders in Q1 2024, a decrease of 49.0% and an increase of 54.4% YoY. The company's Q1 net profit decline was mainly due to the impact of metal price declines and increased financing costs. As of the end of Q1 2024, the company's Huafly project has basically achieved production, the Huayue project has steadily exceeded production, and the Pomalaa wet smelting project has been progressing in an orderly manner. It is believed that the stable and overproducing operation of the company's nickel refining project reflects the company's mastery of high-pressure wet process technology, which will build the company's core competitiveness in the cost competition of lithium-ion cathode materials. The company has invested in four nickel mines in Indonesia, and its layout of nickel-cobalt resources is gradually expanding. In March 2024, the company successfully completed the transfer of minority equity in two Indonesian mines, AJB and WKM, further consolidating the company's nickel mining resources. Zhejiang Huayou Cobalt is a leading integrated enterprise of lithium-ion cathode materials, with layout in upstream resources, midstream manufacturing, and downstream recycling. It is rated as "outperform the market", with a corresponding reasonable value range of 40.20-44.22 yuan/share.