EVE(SZ:300014) Soochow Securities·2025-03-24 06:23Investment Rating - The report assigns an investment rating of "Buy" for the company's convertible bonds, suggesting a positive outlook for potential returns [4][13]. Core Insights - The report highlights that Yihui Lithium Energy has shown steady revenue growth, with a compound annual growth rate (CAGR) of 66.08% from 2019 to 2023, and a revenue of 48.784 billion yuan in 2023, representing a year-on-year increase of 34.38% [4][18]. - The company is recognized as a leader in lithium battery technology innovation, with a strong market position in consumer batteries, power batteries, and energy storage batteries [4][18]. - The convertible bond has a solid debt protection feature, with a current bond floor valuation of 101.21 yuan and a yield to maturity (YTM) of 2.61% [4][11]. Summary by Sections 1. Convertible Bond Basic Information - The total issuance scale of the Yihui convertible bond is 5 billion yuan, with net proceeds allocated to lithium iron phosphate energy storage and large cylindrical passenger vehicle power battery projects [4][10]. - The bond has a maturity of 6 years, with a face value of 100 yuan and a redemption price of 112% at maturity [4][11]. 2. Investment Subscription Recommendations - The expected listing price range for the convertible bond is between 117.35 and 130.74 yuan, with an anticipated subscription rate of 0.0206% [4][13]. - The report suggests active subscription due to the bond's favorable debt protection and moderate dilution impact on the company's total share capital [4][12]. 3. Fundamental Analysis of the Underlying Stock 3.1 Financial Data Analysis - Yihui Lithium Energy's revenue is primarily derived from lithium battery sales, with the proportion of sales from lithium-ion batteries increasing significantly over the years [4][23]. - The company has maintained a strong profit margin, with a net profit margin of 9.27% in 2023, despite a downward trend in sales and gross margins [4][26]. 3.2 Company Highlights - Yihui Lithium Energy is one of the few manufacturers with advanced production capabilities across various battery types, including lithium-ion, consumer, and energy storage batteries [4][33]. - The company has established strong customer relationships with notable clients such as Mercedes-Benz and State Grid, enhancing its competitive advantage in the market [4][33].