CATL(300750) 华兴证券·2024-08-04 13:01Investment Rating - The report maintains a "Buy" rating for the company with an updated target price of RMB 251.30, up from RMB 244.10 [1][10]. Core Insights - The company's gross margin continued to improve, reaching 26.6% in Q2 2024, while the energy storage business experienced rapid growth with a year-on-year shipment increase of 45%, accounting for nearly 25% of total shipments [1][2]. - Despite a 12% year-on-year decline in revenue for the first half of 2024, net profit increased by 10.4% to RMB 228.6 billion, indicating effective cost management and a strong market position [1][8]. - The company achieved a domestic market share of 46.7% in the power battery sector and is actively expanding its overseas market presence [1][2]. Financial Summary - For the first half of 2024, the company reported revenue of RMB 1,667.7 billion, a decrease of 12% year-on-year, while the gross margin improved by 5 percentage points to 26.5% [1][7]. - The net profit for Q2 2024 was RMB 123.6 billion, reflecting a 13.4% increase compared to the previous quarter [1][7]. - The company’s operating cash flow for the first half of 2024 was RMB 447.1 billion, with cash on hand reaching RMB 2.55 billion [1][7]. Performance Adjustments - Revenue forecasts for 2024-2026 have been adjusted downwards to RMB 385.6 billion, RMB 431.0 billion, and RMB 473.1 billion, respectively, while net profit estimates have been increased by 3.0%, 2.3%, and 0.6% for the same periods [2][8]. - The gross margin projections for 2024-2026 have been raised by 2.2, 2.0, and 1.7 percentage points, respectively, indicating improved profitability despite revenue declines [8][9]. Market Position - The company holds a global market share of 37.5% in the power battery sector as of May 2024, solidifying its leading position in the industry [2][8]. - The company has signed agreements with major partners, including Rolls-Royce, to enhance its presence in the energy storage market in Europe and North America [2][8].