CATL(SZ:300750) EBSCN·2024-10-20 08:17Investment Rating - The report maintains a "Buy" rating for the company [1][2] Core Views - The company reported Q3 revenue of 923 billion yuan, a year-on-year decrease of 12.48%, but a quarter-on-quarter increase of 6.07%. The net profit attributable to shareholders was 131 billion yuan, up 25.97% year-on-year and 6.32% quarter-on-quarter [1] - The company has seen a significant improvement in gross margin, which reached 31.17% in Q3, benefiting from a decline in lithium prices and the upgrade of new products [1] - The company’s cash flow remains strong, with net cash flow from operating activities at 227.35 billion yuan in Q3, indicating robust cash generation capabilities [1] Summary by Sections Financial Performance - Q3 revenue was 923 billion yuan, down 12.48% year-on-year but up 6.07% quarter-on-quarter. Net profit attributable to shareholders was 131 billion yuan, up 25.97% year-on-year and 6.32% quarter-on-quarter [1] - The company recorded a gross margin of 31.17% in Q3, an increase of 4.53 percentage points quarter-on-quarter and 8.75 percentage points year-on-year [1] - The net profit margin was 15.01%, down 0.71 percentage points quarter-on-quarter but up 4.54 percentage points year-on-year [1] Production and Capacity - The company’s Q3 shipment volume increased by approximately 15% to about 125 GWh, with a high capacity utilization rate. It is expected to further improve in Q4 [1] - The product mix includes approximately 75% power batteries and 25% energy storage batteries, with the new battery technologies expected to increase their market share significantly by 2025 [1] Cash Flow and Investment - The company reported a net cash flow from operating activities of 227.35 billion yuan in Q3, with a net profit cash ratio of 1.73 [1] - As of the end of Q3, the company had cash and cash equivalents of 2,647 billion yuan, indicating strong liquidity [1] - The company plans to accelerate capacity construction to meet order demand, with capital expenditures expected to increase but at a limited rate [1][2]