SUNWODA(SZ:300207) ZHESHANG SECURITIES·2026-02-13 08:24Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company is a global leader in the consumer electronics pack industry, with the resolution of the Geely lawsuit and the confirmation of a profitability turning point in the power battery sector in 2026, which is expected to reduce negative impacts and open up growth potential [1][2] - The market perceives that the resolution of the Geely lawsuit, despite a one-time provision of 500-800 million yuan significantly impacting 2025 earnings, will clear the emotional cloud and allow the company to start fresh in 2026 [2][3] - The power battery business is expected to transition from a continuous drag to a confirmed profitability turning point, with significant growth in shipment volumes and revenues anticipated in 2025 [3][4] - The integration of consumer electronics battery cells is expected to break through growth ceilings, with new product launches and key international customer integrations driving performance [4][10] Summary by Sections Company Expectations - The market believes that the Geely lawsuit settlement will significantly erode 2025 earnings, but the report predicts a compound profit growth rate of over 30% for the next three years, driven by the resolution of two major suppressive factors [2][3] - The company is expected to achieve a new starting point in 2026, with a clear path for valuation recovery as the stock price has already reflected pessimistic expectations [2][3] Power Battery Business - The power battery sector is projected to achieve a profitability turning point in 2026, with significant increases in shipment volumes and revenues expected in 2025 [3][4] - The company’s power battery shipments reached 16.08 GWh in the first half of 2025, a year-on-year increase of 93%, with revenues of 7.6 billion yuan, a 22.6% increase [3][13] Consumer Electronics Business - The year 2026 is anticipated to be a significant breakthrough year for the company's consumer electronics business, with increasing penetration of steel shell batteries and new product launches expected to drive total shipment volumes and battery ASP [4][10] - The company is transitioning from a simple pack manufacturer to a supplier with integrated cell and pack capabilities, which is expected to enhance growth potential and profitability [4][11] Financial Forecast - Revenue projections for 2025-2027 are 68.8 billion yuan, 83.9 billion yuan, and 103.2 billion yuan, respectively, with corresponding net profits of 2.1 billion yuan, 3.2 billion yuan, and 4.3 billion yuan, reflecting significant year-on-year growth [14][16]