The adsorption method has the advantages of excellent selectivity and high separation efficiency. Existing lithium extraction methods mainly include precipitation method, extraction method, calcination method, and adsorption method. The process flow of the precipitation method is complicated and less selective, and it is easy to co-precipitate with other metal ions; the extraction method requires a large amount of organic solvent, which is not conducive to environmental protection and the health of producers; the calcination method causes serious corrosion of equipment and high environmental pressure; the adsorption method has advantages in efficiency, safety and economy due to its excellent selectivity, high separation efficiency, simple process, and recyclable adsorption materials.

Profit forecast and investment rating: We expect the company's net profit for 24-26 to be 0.901, 1.138, and 1.396 billion yuan, respectively, with corresponding EPS of 1.78 yuan, 2.25 yuan and 2.76 yuan, respectively. Referring to the valuation of comparable companies in the same industry, we gave the company a PE valuation of 35-40 times in 2024. The corresponding target price was 62.30-71.20 yuan, maintaining the “superior to the market” rating.

Key profit forecasting assumptions:

Ion exchange adsorption resins: In terms of sales, the company's sales growth rate is expected to be 15% in 2024-2026 as it expands in high-value emerging fields with high downstream prosperity, such as metal resources and life science, and also refers to the sales growth rate in 2024-2026; in terms of price and gross margin, the product price and gross margin are expected to rise slightly in 2024 with the continuous development of new high-value adsorption and separation materials.

Risk warning

Downstream demand falls short of expectations;

Prices of raw materials fluctuate greatly;

Product certification falls short of expectations.