Tianneng Battery (SH:688819) Guoxin Securities·2025-04-02 05:46Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Views - The company achieved a net profit of 1.555 billion yuan in 2024, a year-on-year decrease of 33%. Revenue for the same period was 45.042 billion yuan, down 6% year-on-year. The gross margin was 15.10%, a decline of 1.13 percentage points year-on-year, while the net margin was 3.53%, down 0.93 percentage points year-on-year [1][7]. - The company's lead-acid battery business faced slight shipment declines due to fluctuating lead prices and delayed industry policies, resulting in a revenue of 41.835 billion yuan, also down 6% year-on-year, with a sales volume of 113.6 GWh, a decrease of 9% year-on-year [1][16]. - The company is expected to see steady growth in its lead-acid battery business in 2025, driven by domestic policy support and enhanced overseas operations, including the establishment of a factory in Vietnam [2][17]. Financial Performance Summary - In 2024, the company reported a revenue of 45.042 billion yuan, a decrease of 5.7% from 2023, and a net profit of 1.555 billion yuan, down 32.5% year-on-year. The earnings per share (EPS) for 2024 is projected at 1.60 yuan [4][24]. - The company anticipates a recovery in net profit to 2.362 billion yuan in 2025, representing a year-on-year increase of 51.9%, with EPS expected to rise to 2.43 yuan [3][24]. - The gross margin for the lead-acid battery business in 2024 was 16.15%, down 1.34 percentage points year-on-year, but is expected to improve with more stable lead prices [1][16]. Business Outlook - The company is actively pursuing transformation in its lithium battery business, which faced a revenue decline of 45% in 2024, with a negative gross margin of 30.71%. However, it has made progress in developing new products and expanding its market presence [2][23]. - The company is also exploring advanced technologies such as fuel cells, sodium batteries, and solid-state batteries, aiming to meet diverse market demands [23].