Company announcement: In 2024, the company achieved revenue, return to mother, and deducted non-net profit of 79.77 billion yuan, 10.5 billion yuan, and 9.25 billion yuan respectively, with a year-on-year decline of 10.4%, an increase of 7%, and an increase of 18.5%, respectively. The quality of the company's reports is strong, and the company's hematopoietic capacity is more prominent; the global market share is still increasing, it still maintains a significant comprehensive advantage in fierce competition, and maintains a highly recommended rating.
Q1 Profitability once again exceeded expectations. The company's 24Q1 gross margin was about 26.4%, up 5.1 and 0.8 percentage points month-on-month respectively, exceeding expectations. The company's cost control and ability to conduct raw material prices gradually became apparent. Under the month-on-month decline in sales prices, we estimate that the unit deducted non-profit remained above 0.1 yuan/wh, exceeding expectations.
The accounting treatment is prudent, and the profit quality is high. The four rates for companies A and 2024Q1 totaled about 13%, increasing by 2.9 and 4 percentage points, respectively. The fee rate increased to a certain extent, and financial expenses increased 3.3 percentage points month-on-month, mainly due to exchange losses, and the fee rate fluctuated somewhat in the short term. B. 2024Q1's other revenue was about 3.2 billion yuan, an increase of 70% over the previous month. The sharp month-on-month increase is mainly due to tax benefits brought about by preferential policies in advanced manufacturing industries. Purchase tax relief will be partially confirmed every month thereafter. C and 2024Q1 expect liabilities to reach 57.3 billion yuan, an increase of 5.65 billion yuan over the previous month, mainly due to sales rebates and warranty claims. Overall, the company has strict accounting treatment, the profit quality of the statements is high, and the profit level is supported.
The balance sheet is stronger. At the end of 2024Q1, the company's fixed assets were about 114.5 billion yuan, showing the first decline from month to month. Projects under construction were about 26.22 billion yuan, a year-on-year decrease of 18.9%. The company's capital expenditure has begun to slow down. The company's strict depreciation policy in previous years will significantly reduce future depreciation burdens, and the decline in fixed assets will be a landmark factor. It is expected that hundreds of GWH of production capacity will be fully depreciated in the next 1-2 years, and the company's profitability will be relatively strong. The company's net operating cash flow in 2024Q1 was about 28.358 billion yuan, an increase of 35% over the previous year. The company's cash flow was excellent, and the growth rate was higher than the profit growth rate. The reaction of cash flow to profit quality was quite real. Strong reporting is a further demonstration of the company's operating and management capabilities, industrial chain position, and scale advantages.
The global market share of power batteries continues to rise. In Q1 2024, the company achieved about 95 GWh of power and energy storage battery shipments, an increase of 26% over the previous year, including 76 GWh of power and 19 GWh of energy storage, up 25% and 36%, respectively. Q4 The unit returned to the mother and deducted non-net profit of about 0.11 or 0.1 yuan/wh. It was basically flat from month to month, and profitability exceeded expectations. The 24Q1 market momentum and the public price of energy storage cells continued to decline. The Q1 price of various battery cells generally declined by 0.06 yuan/wh, but the company's profitability did not decrease. Considering the reporting side's careful handling of costs, we expect the company's unit profit to remain relatively stable in the future. According to SNE data, the company achieved 35.5GWh of installed capacity in the global power market in January-January '24, with a year-on-year increase of 45%. The global market share was about 38.4%, and the year-on-year increase was 4.8 percentage points. It is still far ahead of the second and third companies, BYD and LG. In the energy storage market, in 2024, the company launched an ultra-high-capacity Tianheng energy storage system, achieving 5 years of zero capacity and power attenuation for the first time in the industry. The company's differentiated and cost-effective energy storage products will gradually prove that the energy storage industry also has barriers and is not simply competitive at low prices. Facing different complex energy storage scenarios, high-safety and high-performance energy storage products will gradually differentiate.
Investment advice: Looking ahead to 2024, although competition in the industry is intensifying, the company's leading edge may be further consolidated. Currently, the company is still in the expansion stage, and the factors limiting the company's development are being eliminated. On the demand side, demand for electric vehicles/energy storage and intelligent terminals is strong, and demand for electricity storage in more offline electricity use scenarios is emerging, and the company's competitive advantage may maintain the company's growth to a considerable level. Maintaining the “Highly Recommended” rating, the Q1 company's profitability exceeded expectations. Therefore, we raised the company's profit forecast. We expect net profit to be returned to mother of 510.61.2 billion yuan in 2024 and 2025, to a target price of 240-260 yuan.
Risk warning: NEV policies fall short of expectations; increased competition may lead to lower prices.