occurrences
The company released its 2024 semi-annual report. 2024H1 achieved revenue of 23.918 billion yuan, +7.57% year over year; net profit to mother of 0.824 billion yuan, +87.89% year over year. The second quarter achieved revenue of 12.943 billion yuan, +10.08% YoY, +17.93% month-on-month; net profit to mother 0.505 billion yuan, -16.25% YoY, +58.31%.
Consumer battery business performance exceeds expectations
The company's consumer business revenue growth exceeded expectations. As the self-supply rate of consumer batteries increased, profitability increased significantly.
2024H1's consumer business achieved a gross profit margin of 18.07%, +4.14pct year-on-year. The mobile phone side is affected by the introduction of AI phones and the switching cycle, and the company's market share is gradually increasing. With the arrival of the traditional peak season for consumer electronics, demand for 2024H2 is expected to increase compared to the first half of the year. Laptop terminals With the advent of AI PCs, the company's shipments are expected to usher in a new growth point.
Currently, the company is actively exploring the share of laptop customers, further increasing the company's penetration rate and market share.
Shipment volume and market share of the power battery business continue to increase
2024H1's power battery shipments reached 8.33 GWh, +66.93% year-on-year. Achieved revenue of 6.201 billion yuan, +19.58% year-on-year. In terms of customers and models, the company strengthened cooperation with mainstream domestic car companies and leading new power customers, and mass-produced and delivered a number of popular models. At the same time, the company has expanded partnerships with well-known foreign automobile manufacturers. In the field of ultra-fast charging, the company has now been designated by many leading customer models. In the commercial vehicle sector, it has been supplied to many customers and has been mass-produced and marketed. As utilization rates increase and dilution costs, the power battery business is expected to turn a loss into a profit.
New products and technologies continue to be implemented to create a differentiated route
The company adheres to the “focus+differentiation” strategy. The power battery focuses on square aluminum case batteries and lays out power large cylindrical batteries, covering the BEV and PHEV/EREV power markets. For BEV, full fast charging is achieved to solve users' concerns about safety, range, long charging time and high cost. For PHEV/EREV, the company's layout covers 100-300+km plug-in hybrid battery products, of which EREV products target the high-end market.
Profit forecasts and investment advice
We expect the company's 2024-2026 revenue to be 57.737/66.531/75.954 billion yuan, respectively, up 20.63%/15.23%/14.16% year over year; net profit to mother will be 1.675/2.04/2.47 billion yuan, respectively, up 55.60%/21.82%/21.10% year on year, corresponding PE 17/14/12 times, and EPS 0.90/1.10/1.33 yuan/share, respectively, for three years The CAGR is 31.9%, giving it a “buy” rating.
Risk warning: Industry competition increases risk; NEV sales fall short of expectations; raw material prices fluctuate greatly.