CATL(SZ:300750) First Shanghai Securities·2024-04-24 06:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 233.59 RMB, indicating a potential upside of 22.99% from the current price [2][4]. Core Insights - The company reported Q1 2024 results that met expectations, with revenue of 79.77 billion RMB, a year-on-year decrease of 10.41%, and a net profit of 10.51 billion RMB, a year-on-year increase of 7% [1]. - The company holds a leading market share in the battery sector, achieving a battery shipment volume of 35.5 GWh in January-February 2024, a year-on-year increase of 44.9%, with a market share of 38.4% [1]. - The company is expanding its international presence through technology licensing agreements with major automakers like Ford, Tesla, and GM, and expects to achieve breakeven at its German factory in 2024 [1]. - The company launched the Tianheng energy storage system, which boasts zero degradation in power and capacity over five years, enhancing energy density and safety [1]. Financial Summary - The company is projected to generate revenues of 389.39 billion RMB, 469.91 billion RMB, and 526.13 billion RMB for the years 2024, 2025, and 2026, respectively [2]. - The forecasted net profits for the same years are 49.76 billion RMB, 58.59 billion RMB, and 65.30 billion RMB [2]. - The company’s cash flow remains strong, with operating cash flow of 28.4 billion RMB in Q1 2024, a year-on-year increase of 35% [1].