NARADA(SZ:300068) Huafu Securities·2024-09-09 09:39Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [8]. Core Insights - The company reported a revenue of 5.741 billion yuan for the first half of 2024, a year-on-year decrease of 27.27%, with a net profit attributable to shareholders of 185 million yuan, down 39.49% year-on-year [1]. - The performance breakdown shows that the power storage segment generated 1.162 billion yuan in revenue, while the industrial storage segment contributed 659 million yuan. The lead-acid battery segment accounted for 751 million yuan, and the recycled lead business achieved 2.743 billion yuan in revenue [1]. - The gross profit margin for the first half of 2024 was 10.17%, an increase of 0.37 percentage points year-on-year, primarily due to improved profitability from lithium battery products and reduced losses in the recycled lead business [1]. - The company is expected to benefit from favorable policies supporting lead-acid batteries, as the market for electric bicycles continues to favor lead-acid batteries, which currently hold an 80% market share [1]. - The solid-state battery technology has made significant progress, with project acceptance expected by Q4 2024, surpassing previous expectations [2]. Financial Summary - The company’s projected net profits for 2024, 2025, and 2026 are estimated at 510 million yuan, 852 million yuan, and 1.081 billion yuan, respectively, reflecting a compound annual growth rate (CAGR) of 45.59% [2]. - Revenue forecasts for the years 2024 to 2026 are 17.148 billion yuan, 18.380 billion yuan, and 19.237 billion yuan, with growth rates of 17%, 7%, and 5% respectively [3]. - The earnings per share (EPS) is projected to increase from 0.58 yuan in 2024 to 1.24 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 22.1 to 10.4 over the same period [3].