CATL(SZ:300750) SINOLINK SECURITIES·2025-04-15 08:23Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q1 2025 performance shows a recovery in profitability, with revenue of 84.7 billion yuan, a year-on-year increase of 6% and a quarter-on-quarter decrease of 18%. The net profit attributable to shareholders reached 14 billion yuan, up 33% year-on-year and down 5% quarter-on-quarter [1][2] - The company expects a stable production schedule for Q2 2025, with a projected shipment growth of 25% to 30% for the year, driven by increased market share in Europe and additional contributions from commercial vehicles and data center storage batteries [2][4] Summary by Sections Performance Analysis - Q1 2025 saw a shipment of 125 GWh, a 30% increase year-on-year, although down 13% quarter-on-quarter. The increase in energy storage's share has extended the revenue recognition cycle [2] - The average unit price of batteries in Q1 was 0.6 yuan/Wh, down 17% year-on-year and 5% quarter-on-quarter, primarily due to lower raw material costs [2] - The company's Q1 operating and net profit per unit were 0.084 and 0.099 yuan/Wh, respectively, both showing a nearly 10% increase [2] Future Outlook - The company anticipates minimal impact from U.S. tariffs, with exposure remaining in the low single digits. The tariff policies in other countries are stable, and European shipments are expected to grow over 20% [2] - The company maintains a target return on equity (ROE) of 24% to 25% [2] Research and Development - The company is significantly investing in R&D, with innovations such as the "Shenxing" ultra-fast charging battery and "Tianxing" heavy-duty commercial vehicle battery being developed. The company is also enhancing manufacturing efficiency through automation technologies [3] Financial Projections - The company is projected to achieve revenues of 70 billion yuan in 2025 and 83.9 billion yuan in 2026, with corresponding price-to-earnings ratios of 14x and 12x [4][7]