Great Power(300438) Ping An Securities·2025-01-24 10:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current stock price of 25.97 yuan [1]. Core Views - The company is expected to report a net loss attributable to shareholders of 165 to 232 million yuan in 2024, a significant decline from profitability in the previous year. The adjusted net loss, excluding non-recurring items, is projected to be between 224 to 314 million yuan [3][4]. - The decline in revenue and gross profit from energy storage lithium batteries is attributed to a significant drop in the price of upstream materials, particularly lithium carbonate, and increased market competition [8][9]. - The report anticipates that the prices of lithium carbonate and energy storage batteries will stabilize in the future, which could improve the company's profitability in the energy storage battery segment [9]. Financial Summary - Revenue is projected to recover slightly from 6,932 million yuan in 2023 to 7,034 million yuan in 2024, with a forecasted increase to 8,618 million yuan in 2025 and 9,862 million yuan in 2026 [7][10]. - The net profit is expected to decline sharply to -187 million yuan in 2024, before rebounding to 398 million yuan in 2025 and 517 million yuan in 2026 [7][10]. - The gross margin is forecasted to decrease from 16.5% in 2023 to 14.0% in 2024, with a slight recovery to 14.1% in 2025 and 14.2% in 2026 [11]. Market and Competitive Position - The company is recognized as a leading global manufacturer of lithium batteries, focusing on the energy storage battery sector, which is expected to see growth due to various market factors [9]. - The report highlights the company's strategic positioning in emerging markets and its collaborations with leading clients in the energy storage sector, indicating strong growth potential [9].