EVE(SZ:300014) SINOLINK SECURITIES·2025-04-18 03:23Investment Rating - The report maintains a "Buy" rating for the company, expecting significant profit recovery in the battery segment [5]. Core Insights - The company reported a revenue of 48.6 billion RMB for 2024, a slight decrease of 0.3% year-on-year, while the net profit attributable to the parent company increased by 14.8% to 3.16 billion RMB [2]. - The company anticipates strong growth in battery shipments, projecting a total of 130 GWh for 2025, with 50 GWh from power batteries and 80 GWh from energy storage batteries [4]. - The company is expected to achieve net profits of 5.38 billion RMB, 7.20 billion RMB, and 9.08 billion RMB for the years 2025 to 2027, respectively, with corresponding P/E ratios of 15, 11, and 9 [5]. Performance Summary - In Q4, the company achieved a revenue of 14.57 billion RMB, marking a 10% increase year-on-year but an 18% decrease quarter-on-quarter [2]. - The gross profit margin for 2024 was reported at 17.4%, an increase of 0.4 percentage points year-on-year, while the net profit margin was 6.5%, up by 0.9 percentage points [3]. - The company’s battery segment revenues for 2024 were 19.2 billion RMB for power batteries (down 20%), 19.0 billion RMB for energy storage batteries (up 16%), and 10.3 billion RMB for consumer batteries (up 23%) [4]. Business Segment Analysis - Power battery shipments reached 30.29 GWh in 2024, an 8% increase year-on-year, while energy storage battery shipments surged by 92% to 50.45 GWh, securing the second-largest global market share [4]. - The consumer battery segment achieved full production and sales, with monthly sales exceeding 10 million units, particularly in niche markets such as electric tools and smart mobility [4]. Financial Projections - The company’s revenue is projected to grow significantly in the coming years, with estimates of 69.4 billion RMB in 2025, 85.0 billion RMB in 2026, and 103.3 billion RMB in 2027, reflecting growth rates of 42.75%, 22.48%, and 21.51% respectively [8]. - The diluted earnings per share are expected to rise from 1.99 RMB in 2024 to 4.44 RMB by 2027, indicating a strong upward trend in profitability [8].