CATL(SZ:300750) BOCOM International·2025-07-31 13:47Investment Rating - The report maintains a "Buy" rating for the company, CATL (宁德时代) with a target price of RMB 314.11, indicating a potential upside of 13.4% from the current price of RMB 277.09 [1][10]. Core Insights - The company's profitability remains robust, with a strong overseas growth rate. In the first half of 2025, CATL achieved a revenue of RMB 178.9 billion, a year-on-year increase of 7.3%, and a net profit of RMB 30.5 billion, up 33.3% year-on-year [2][5]. - The company is focusing on shareholder returns, planning to allocate 15% of its net profit for dividends [5]. - CATL's market position is solid, with ongoing advancements in battery technology and steady progress in battery swap station construction [5]. Financial Overview - Revenue projections for CATL are as follows: RMB 400.9 billion in 2023, RMB 362.0 billion in 2024, and expected to rise to RMB 447.2 billion in 2025, reflecting a year-on-year growth of 23.5% [3][11]. - Net profit is projected to increase from RMB 44.1 billion in 2023 to RMB 62.9 billion in 2025, with a compound annual growth rate of 24.0% [3][11]. - The earnings per share (EPS) is expected to grow from RMB 10.06 in 2023 to RMB 14.36 in 2025 [3][11]. - The company maintains a strong financial position with a projected net cash position of RMB 232.1 billion by the end of 2025 [6][11]. Market Position and Strategy - CATL's global market share for power batteries reached 38.1% in the first five months of 2025, an increase of 0.6 percentage points year-on-year [5]. - The company is expanding its overseas operations, with overseas revenue reaching RMB 61.2 billion in the first half of 2025, a year-on-year increase of 21% [5]. - CATL is also advancing in solid-state battery technology, with plans for small-scale production by 2027 and potential mass production by 2030 [5]. Conclusion - The report emphasizes CATL's strong product capabilities and global expansion strategy, maintaining its earnings forecast and target price based on a DCF model [5][6].