EVE(SZ:300014) SINOLINK SECURITIES·2024-06-27 09:30Investment Rating - The report assigns a "Buy" rating to the company with a target price of 54.74 RMB, based on its leading position in the energy storage and consumer battery sectors, strong R&D capabilities, and comprehensive industry chain layout [2][3]. Core Insights - The company is a leading platform enterprise in the lithium battery sector, having developed over 23 years from consumer batteries to power and energy storage batteries. In 2023, the revenue from power, storage, and consumer batteries was 240 billion, 163 billion, and 84 billion RMB, respectively, with year-on-year growth rates of +31%, +73%, and -2% [1][9]. - The supply-side landscape is improving, with industry utilization rates expected to rise. The demand growth rate for the power and storage battery industry is projected to be nearly 30% in 2024, maintaining high demand and a healthy inventory cycle [1][17]. - The company has seen significant growth in energy storage battery shipments, with 2023 and Q1 2024 shipments reaching 26 GWh and 7 GWh, respectively, representing year-on-year increases of +121% and +113% [2][19]. - The company is benefiting from the increasing concentration in the industry, with a shift from price competition to quality competition, which is expected to enhance profitability through increased overseas and system sales [2][19]. - The company is also experiencing a recovery in revenue from small cylindrical batteries, driven by an upturn in the power tool industry, with expectations for significant revenue growth in 2024 [2][19]. Summary by Sections 1. Power and Storage Battery Supply and Demand Optimization - The company has a 23-year history as a leading lithium battery enterprise, with significant revenue growth in power and storage batteries [1][9]. - The power battery segment includes various types of batteries used in new energy vehicles and commercial vehicles, while the storage battery segment covers a wide range of applications [9][10]. 2. Energy Storage Battery: Continuous Growth Benefiting from Industry Concentration - The company has achieved a global second position in energy storage battery shipments, with a notable improvement in profitability [2][19]. - The industry is shifting towards quality competition, benefiting leading companies like this one [2][19]. 3. Power Battery: Steady Market Share Growth and Leading Progress in Large Cylindrical Batteries - The company has seen a steady increase in market share, particularly in the commercial vehicle sector, with significant customer validation expected in 2024 [2][19]. 4. Consumer Battery: Multiple Segment Champions Benefiting from Upturn - The small cylindrical battery segment is expected to see substantial revenue growth in 2024, contributing to profitability recovery [2][19]. 5. Gradual Realization of Industry Chain Layout, Strengthening Competitive Advantage - The company has been actively involved in various financing activities to support its projects in cylindrical LFP batteries and large cylindrical power battery projects [2][19]. 6. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 49 billion, 60 billion, and 75 billion RMB from 2024 to 2026, with year-on-year growth rates of +20%, +23%, and +25% [2][4].