CATL(SZ:300750) Western Securities·2025-08-07 08:58Investment Rating - The investment rating for the company is "Buy" [6][13]. Core Views - The company reported better-than-expected Q2 performance, focusing on overseas expansion benefits [1][2]. - In H1 2025, the company achieved revenue of 178.886 billion yuan, net profit attributable to shareholders of 30.485 billion yuan, and non-recurring net profit of 27.187 billion yuan, representing year-on-year increases of 7.27%, 33.33%, and 35.62% respectively [1][6]. - The company plans to distribute 15% of H1 2025 net profit (46 billion yuan) as cash dividends [1]. Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 94.182 billion yuan, a year-on-year increase of 8.26% and a quarter-on-quarter increase of 11.19% [1]. - The net profit attributable to shareholders for Q2 2025 was 16.523 billion yuan, up 33.73% year-on-year and 18.33% quarter-on-quarter [1]. - The sales gross margin was 25.58%, down 1.06 percentage points year-on-year but up 1.17 percentage points quarter-on-quarter [1]. Market Position and Strategy - The company has a strong position in the power storage battery sector, with a sales net profit margin reaching a historical peak of 18.59% in Q2 2025 [2]. - The total shipment volume for H1 2025 was 275 GWh, with a focus on overseas market expansion expected to boost market share post-2026 [2]. - The company is projected to increase its global power market share to 39% by 2027, driven by the European market and the LRS authorization model in the U.S. [2]. Earnings Forecast - The company is expected to achieve net profits of 66.178 billion yuan, 80.831 billion yuan, and 94.845 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 30.4%, 22.1%, and 17.3% [3][4]. - Corresponding EPS for the same years is projected to be 14.51 yuan, 17.73 yuan, and 20.80 yuan [3][4].