EVE(300014) HTSC·2025-06-06 10:51Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 49.20 [5][8]. Core Views - The company is expected to see a gradual recovery in its power battery profitability throughout 2025, with a production capacity utilization rate exceeding 60% in Q1 2025 and anticipated further improvements in Q2 [2]. - The energy storage business is projected to continue growing in volume while maintaining stable profitability, with the company holding the second-largest global market share in energy storage batteries [3]. - The consumer battery segment remains a cash cow for the company, with a revenue increase of 23.4% year-on-year in 2024, and the company expects a revenue growth rate of 20% in 2025 [4]. Summary by Sections Power Battery Business - In 2024, the company shipped 30.29 GWh of power batteries, although it remained in a loss position. The company expects significant growth in power battery shipments in 2025 due to new customer acquisitions in passenger vehicles and increased demand in commercial vehicles [2]. - The company has secured a contract with BMW for cylindrical batteries and is expanding its production capacity in Hungary and the U.S. [2]. Energy Storage Business - The company shipped 50.45 GWh of energy storage batteries in 2024, representing a year-on-year increase of 91.9%. The estimated net profit per watt-hour for energy storage is approximately RMB 0.03 [3]. - A procurement agreement for 50 GWh of battery cells was signed with a partner for the years 2025-2027, providing revenue support for the energy storage segment [3]. Consumer Battery Business - The consumer battery segment generated revenue of RMB 10.32 billion in 2024, with a gross margin of 27.58%, reflecting a year-on-year increase of 3.85 percentage points [4]. - The company has expanded its market share in various segments, including small cylindrical batteries, and has commenced production at its new factory in Malaysia [4]. Financial Forecast - The company forecasts net profits of RMB 5.035 billion, RMB 6.727 billion, and RMB 7.939 billion for the years 2025, 2026, and 2027, respectively [5][28]. - The projected revenue for 2025 is RMB 72.494 billion, with a year-on-year growth of 49.12% [28].