CATL(SZ:300750) Huaan Securities·2024-10-24 03:44Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company's Q3 gross margin exceeded expectations, and the performance after adjusting for impairment losses also surpassed expectations [1] - The company achieved a revenue of 92.3 billion, with a year-on-year increase of 26% and a quarter-on-quarter increase of 6% [1] - The gross margin reached 31.2%, reflecting a quarter-on-quarter increase of 8.8 percentage points and a year-on-year increase of 4.5 percentage points [1] - The report indicates strong demand for power and energy storage, with the company's market share increasing year-on-year [1] Financial Performance Summary - For Q3, the company reported a net profit attributable to shareholders of 13.1 billion, with a year-on-year increase of 28% and a quarter-on-quarter increase of 12% [1] - The report projects the company's net profit for the years 2024, 2025, and 2026 to be 55.4 billion, 64.0 billion, and 74.8 billion respectively, corresponding to P/E ratios of 20X, 17X, and 15X [1] - The company's total revenue for 2023 is projected at 400.9 billion, with a year-on-year growth of 22% [2][3] - The gross profit margin is expected to improve to 29.1% in 2024, with a gradual increase to 29.1% by 2026 [3] Market Position - According to SNE data, the company's global market share in battery installations reached 37.1% in the first eight months of the year, with a domestic market share of 45.5% [1] - The report emphasizes the company's leading position in the industry, with a solid competitive advantage [1] Cash Flow and Inventory - The company's cash flow from operating activities for Q3 was 22.7 billion, reflecting a year-on-year increase of 45.9% [1] - The inventory at the end of Q3 was reported at 55.2 billion, indicating an increase in inventory due to rising production and in-transit goods [1]