SK(SH:688155) Soochow Securities·2025-07-07 13:01Investment Rating - The report assigns an "Accumulate" rating for the company for the first time [7]. Core Viewpoints - The company is entering the solid-state battery equipment sector through a partnership with Qingtao Energy, focusing on the development of core equipment for solid-state batteries [10][12]. - The company's automated production lines and module structure components are rapidly expanding, with significant overseas order growth, particularly in North America and Europe [12][18]. - The acquisition of Fujian Dongheng has strengthened the company's position in the lithium battery module precision structural components market, contributing positively to its financial performance [21][22]. Summary by Relevant Sections Financial Forecast and Valuation - The company is expected to achieve total revenue of RMB 2,464 million in 2024, with a year-on-year growth of 0.64%. The projected net profit attributable to shareholders is RMB 223 million, reflecting a significant increase of 458.19% [29]. - For the years 2025 to 2027, the forecasted net profits are RMB 301.68 million, RMB 366.01 million, and RMB 446.69 million, respectively, with corresponding P/E ratios of 22, 18, and 15 [29][26]. Business Development - The company has successfully signed a long-term cooperation framework with Qingtao Energy, marking its entry into the solid-state battery equipment market [10][12]. - The automated production lines for modules/PACK and EDS are showing strong overseas expansion, with 68% of the total orders coming from international clients by the end of 2024 [12][14]. - The structural components business, following the acquisition of Fujian Dongheng, has exceeded performance commitments, contributing significantly to the company's earnings [21][22]. Profitability and Growth - The company's overseas revenue reached RMB 4.5 billion in 2024, a remarkable increase of 482% year-on-year, accounting for 18.2% of total revenue [22][25]. - The gross margin for overseas operations improved to 29.9%, significantly higher than domestic margins, indicating a recovery in profitability [18][22]. - The company is expected to maintain a positive growth trend in revenue and profitability, driven by the successful execution of overseas orders and business structure optimization [24][26].