CATL(SZ:300750) Soochow Securities·2024-12-12 23:35Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company announced a joint venture with Stellantis in Spain, with a total investment of €4 billion to build a lithium iron phosphate battery factory, expected to start production by the end of 2026 with a planned capacity of 50 GWh [2] - The company plans to distribute a cash dividend of ¥12.3 per 10 shares, reflecting a dividend yield of 0.45%, showcasing its strong financial position and commitment to shareholder returns, exceeding market expectations [2] - The joint venture's scale exceeds market expectations, indicating a sustained trend towards electrification in Europe, with Stellantis aiming for a 50% electrification rate by 2030, requiring over 65 GWh of batteries, of which the company is expected to supply over 60% [2][3] Financial Forecasts and Valuation - The company’s revenue is projected to reach ¥400.917 billion in 2023, with a slight decline to ¥379.890 billion in 2024, followed by growth to ¥471.437 billion in 2025 and ¥549.370 billion in 2026 [1] - The net profit attributable to shareholders is expected to grow from ¥44.121 billion in 2023 to ¥50.355 billion in 2024, and further to ¥65.463 billion in 2025 and ¥80.084 billion in 2026, reflecting growth rates of 43.58%, 14.13%, 30.00%, and 22.34% respectively [1][4] - The report revises the net profit forecasts for 2024-2026 to ¥504 billion, ¥655 billion, and ¥801 billion respectively, with corresponding P/E ratios of 24x, 18x, and 15x, and sets a target price of ¥446 for 2025 based on a 30x P/E ratio [4]