CATL(SZ:300750) HUAXI Securities·2024-07-31 10:03Investment Rating - The report maintains a rating of "Add" for the company, down from a previous "Buy" rating [6]. Core Insights - The company is a leader in lithium batteries with a global competitive advantage, and its performance is expected to continue growing [8]. - The demand for lithium batteries is projected to stabilize, leading to adjusted revenue and profit forecasts for 2024-2026 [8]. - The company has demonstrated stable performance with excellent profitability, as evidenced by its revenue and net profit growth in recent quarters [3][4]. Financial Performance - For H1 2024, the company achieved revenue of 166.77 billion, a year-on-year decrease of 11.88%, while net profit attributable to shareholders was 22.87 billion, a year-on-year increase of 10.37% [2]. - In Q2 2024, the company reported revenue of 86.996 billion, a year-on-year decrease of 13.18% but a quarter-on-quarter increase of 9.06%. The net profit for the same period was 12.355 billion, showing a year-on-year increase of 13.40% and a quarter-on-quarter increase of 17.56% [3]. - The gross margin and net margin for Q2 2024 were 26.64% and 15.73%, respectively, both showing improvements compared to the previous year [3]. Market Position - The company has maintained its leading position in the power battery market, with a global market share of 37.5% in the first half of 2024, an increase of 2.3 percentage points year-on-year [4]. - In the energy storage market, the company has ranked first in global shipments for three consecutive years, with its market share expected to continue increasing [4]. Competitive Advantages - The company is continuously innovating in battery technology, launching new products that enhance its competitive edge. Notable products include the Shenxing Plus battery and the Tianheng energy storage system, which boasts a 30% improvement in energy density [5]. - The company is expanding its global production capacity, with a total battery system capacity of 323 GWh and an additional 153 GWh under construction as of H1 2024 [5]. - The company has established extensive partnerships with major automotive manufacturers, both domestically and internationally, enhancing its market presence [5]. Financial Projections - Revenue forecasts for 2024-2026 have been adjusted to 374.55 billion, 454.58 billion, and 521.22 billion, respectively, reflecting a more conservative outlook [8]. - Net profit forecasts for the same period have been revised to 50.29 billion, 61.30 billion, and 71.59 billion, respectively, with corresponding EPS estimates adjusted to 11.43, 13.94, and 16.28 [8].