SUNWODA(300207) ZHESHANG SECURITIES·2025-01-15 10:23Investment Rating - The investment rating for the company is "Buy" (maintained) [6]. Core Views - The company is a global leader in the consumer battery pack industry, with improving profitability in its consumer battery business due to the scale effects of lithium batteries. The performance growth is expected to exceed expectations as the negative impact from the power battery business diminishes [1]. Summary by Sections Company Overview - The company has established itself as a leader in consumer batteries, with a diversified business model that includes 3C consumer batteries, power technology, and energy storage systems. The consumer battery segment accounted for 59.64% of revenue in 2023 [19][21]. - The company has a strong management team with extensive experience, with most executives having over 10 years of tenure at the company [22]. Industry Analysis - The consumer battery market is experiencing steady growth, driven by the increasing demand for higher battery capacities in smartphones. The average capacity of flagship smartphones has risen from approximately 1500mAh in 2011 to over 5000mAh currently [2][29]. - The trend towards dual battery solutions in foldable smartphones is gaining traction, with major brands adopting this technology to enhance charging speed and reduce device thickness [41][42]. Company Performance - The consumer battery business is expected to continue its growth trajectory, supported by the company's integrated CELL+PACK strategy, which enhances its competitive advantage [3][4]. - The power battery business, which has historically been a drag on profitability, is showing signs of recovery as the market stabilizes and the company focuses on key clients [4][5]. Future Expectations - The company is projected to achieve a compound annual growth rate (CAGR) of over 30% in profits over the next three years, driven by the scale effects of lithium batteries and the diminishing negative impact from the power battery segment [5][6]. - Key catalysts for growth include an increase in market share for the company's battery cells and stronger-than-expected growth in the consumer battery pack business [6]. Financial Forecast - Revenue forecasts for 2024-2026 are estimated at 567.30 billion, 662.0 billion, and 771.4 billion yuan, respectively, with corresponding net profits of 16.2 billion, 23.5 billion, and 29.7 billion yuan [11].