EVE(SZ:300014)2024-05-07 13:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [3][11]. Core Views - The company's 2023 annual report and 2024 Q1 results met expectations, with a profit of 4.05 billion RMB in 2023, reflecting a year-on-year increase of 15.42%. The Q1 2024 profit was 1.07 billion RMB, down 6.49% year-on-year but up 70.30% quarter-on-quarter [3][4]. - The company's power battery business showed steady growth, with a significant increase in energy storage shipments, achieving a total of 28.08 GWh in power battery shipments, up 64.22% year-on-year, and 26.29 GWh in energy storage battery shipments, up 121.14% year-on-year [3][4]. - The company is advancing new technology products and accelerating overseas expansion, including plans to build cylindrical battery production capacity in Hungary and exploring new business models through licensing agreements with international companies [3][4]. Financial Summary - In 2023, the company reported total revenue of 48.78 billion RMB, a 34.4% increase from 2022. The net profit for 2023 was 4.05 billion RMB, with a growth rate of 15.4% [4][9]. - The forecasted earnings per share (EPS) for 2024-2026 are adjusted to 2.30 RMB, 2.88 RMB, and 3.44 RMB, respectively, with corresponding price-to-earnings ratios of 16.9, 13.5, and 11.3 [3][4][9]. - The company's gross profit margin for 2023 was 17.04%, with a net profit margin of 9.27% [5][9]. Market Position - The company holds a 4.45% market share in the domestic power battery market, ranking fourth nationally, and is the third-largest globally in energy storage cell shipments [3][4]. - The revenue breakdown shows that consumer batteries generated 8.36 billion RMB, down 1.78% year-on-year, while power batteries generated 23.98 billion RMB, up 31.41%, and energy storage batteries generated 16.34 billion RMB, up 73.24% [3][4]. Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 49.09 billion RMB in 2024, 60.37 billion RMB in 2025, and 70.71 billion RMB in 2026, reflecting growth rates of 0.6%, 23.0%, and 17.1%, respectively [4][9]. - The EBITDA is forecasted to increase from 6.34 billion RMB in 2024 to 9.24 billion RMB in 2026, indicating strong operational performance [4][9].