EVE(SZ:300014) HTSC·2025-10-24 06:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of 96.96 RMB, up from a previous target of 62.40 RMB [5][7]. Core Insights - The company reported Q3 2025 revenue of 16.832 billion RMB, a year-on-year increase of 35.9% and a quarter-on-quarter increase of 9.5%. The net profit attributable to shareholders was 1.211 billion RMB, up 15.1% year-on-year and 140.2% quarter-on-quarter, although it fell short of the previous expectation of 1.581 billion RMB due to one-time charges [1]. - The company is expected to benefit from improved customer structure and increased production capacity utilization in the future, particularly with the release of orders from the BMW cylindrical battery project and North American energy storage clients [1][2]. - The company anticipates a significant increase in demand for commercial vehicles, with the battery business expected to achieve a gross margin of 20% in 2026, up from over 17% in 2025 [2]. - The energy storage segment saw a 23% quarter-on-quarter increase in battery shipments, with gross margins improving to over 12% due to better customer structure [3]. - The company is making progress in solid-state battery technology, with plans for mass production and potential applications in high-end equipment [4]. Summary by Sections Q3 Financial Performance - Q3 2025 revenue was 16.832 billion RMB, with a year-on-year growth of 35.9% and a quarter-on-quarter growth of 9.5% [1]. - Net profit attributable to shareholders was 1.211 billion RMB, reflecting a year-on-year increase of 15.1% and a quarter-on-quarter increase of 140.2% [1]. Battery Business Outlook - The company shipped 13.1 GWh of power batteries in Q3 2025, with a gross margin exceeding 17% [2]. - The commercial vehicle sector is projected to double in growth by 2026, contributing to improved profitability [2]. Energy Storage Segment - Energy storage battery shipments reached 19.7 GWh in Q3 2025, with a gross margin recovery to over 12% [3]. - The company plans to increase the export ratio of energy storage batteries to over 25% next year [3]. Solid-State Battery Development - The company is advancing in solid-state battery technology, with a production base expected to be completed by December 2025 [4].