Xin Lang Cai Jing·2025-09-04 09:55Core Viewpoint - Dongwu Securities research report indicates that EVE Energy has reached an operational turning point, with expectations for both volume and profit to increase in the future, leading to potential profit elasticity [1] Group 1: Production and Sales - In Q2 2025, EVE Energy shipped 27.3 GWh, representing a quarter-on-quarter increase of 30% and a year-on-year increase of 21% [1] - The capacity utilization rate reached 90% in June, with projected shipments of 130 GWh in 2025, reflecting a year-on-year growth of over 60% [1] - Shipments are expected to reach 200 GWh in 2026, with a year-on-year growth of over 50%, maintaining high growth rates into 2027 [1] Group 2: Profitability - Battery prices have bottomed out, and energy storage is operating at full production and sales [1] - With the release of popular models from Xiaopeng and Leap Motor, capacity utilization is expected to continue increasing [1] - The joint venture materials factory is anticipated to become profitable, leading to significant operational improvements in Q3 [1] Group 3: Future Outlook - The introduction of large cylindrical and large iron-lithium new products in 2026 is expected to drive volume growth, particularly in overseas markets [1] - The energy storage business is projected to contribute 7 billion in profits, with profit elasticity expected in 2026-2027 [1] - EVE Energy is focusing on differentiated products, with full orders for large cylindrical and large iron-lithium batteries, entering a harvest period in 2026 [1] Group 4: Financial Projections - The net profit attributable to shareholders for 2025 is maintained at 4.7 billion, reflecting a year-on-year increase of 16% [1] - Given the rapid growth in shipments, a valuation of 25x is assigned for 2026, corresponding to a target price of 92 yuan, maintaining a "buy" rating [1]