ZHUHAI COSMX(SH:688772) Changjiang Securities·2024-05-13 02:32Investment Rating - The report maintains a Buy rating for Zhuhai CosMX Battery (688772 SH) [8] Core Views - Zhuhai CosMX achieved RMB 11 446 billion in revenue for 2023, a 4 29% YoY increase, with net profit attributable to shareholders reaching RMB 344 million, a significant 278 19% YoY growth [2][5] - Non-GAAP net profit surged to RMB 231 million, up 1170 55% YoY, driven by strong performance in the consumer battery segment [2][5] - In Q4 2023, revenue was RMB 2 905 billion, up 10 19% YoY but down 5 25% QoQ, with net profit attributable to shareholders at RMB 55 million, up 786 20% YoY but down 63 4% QoQ [2][5] - The company's consumer battery business showed steady growth, with a 31 10% market share in the notebook segment and an 8 18% market share in smartphones, up 0 75pct YoY [6] - The company successfully achieved mass production of batteries for Apple smartphones, which is expected to contribute significantly to future growth [6] Business Performance and Outlook - The consumer battery segment is expected to see a sequential decline in shipments in Q1 2024 due to seasonal factors, but YoY growth is anticipated as consumer demand recovers [6] - The company's gross margin is expected to decline slightly due to the continued downward trend in raw material prices [6] - The power and energy storage business is expected to reduce losses sequentially in Q1 2024, but overall profitability remains under pressure [6] - The company plans to focus on advanced technologies such as fast charging, high-energy-density silicon-carbon solutions, and disc-shaped battery processes to expand its market share in the consumer battery segment [6] - The company is also concentrating resources on developing automotive start-stop and drone battery businesses, while cautiously managing opportunities in the power and energy storage sectors [6] Financial Projections - The company is expected to achieve a net profit of RMB 860 million in 2024, with a PE ratio of 17x [6] - Revenue is projected to grow to RMB 13 988 billion in 2024, RMB 17 205 billion in 2025, and RMB 21 506 billion in 2026 [10] - Net profit attributable to shareholders is forecasted to reach RMB 857 million in 2024, RMB 1 479 billion in 2025, and RMB 2 433 billion in 2026 [10]