GOTION(SZ:002074) Donghai Securities·2024-05-14 02:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5]. Core Views - The company is one of the leading battery manufacturers in China with the highest self-sufficiency rate in core raw materials, expected to benefit significantly from the global electrification trend and the development of the energy storage industry. Projected net profits for 2024-2026 are 1.129 billion, 1.665 billion, and 2.365 billion yuan respectively, with corresponding EPS of 0.63, 0.93, and 1.32 yuan, leading to PE ratios of 29.98x, 20.32x, and 14.31x based on the closing price on May 13, 2024 [9]. Summary by Sections 1. Performance and Industry Trends - The company reported a revenue of 31.605 billion yuan in 2023, a year-on-year increase of 37.1%, and a net profit of 939 million yuan, up 201.0% year-on-year. The gross margin was 16.9%, and the net margin was 3.1% [16][19]. - In Q1 2024, the company achieved a revenue of 7.508 billion yuan, a year-on-year increase of 4.6%, but a quarter-on-quarter decrease of 23.6%. The net profit was 69 million yuan, down 8.6% year-on-year and 89.3% quarter-on-quarter [19]. 2. Global Strategy and Product Development - The company has a complete product matrix in the energy storage sector and ranks among the top ten globally in terms of shipment volume, with a 20% year-on-year increase in 2023, reaching approximately 6 GWh [9][38]. - The company has expanded its production capacity to 314 GWh/year globally, with 241 GWh/year in China and 73 GWh/year overseas. It has received approval for a 40 GWh/year battery cell project in the U.S. [41]. 3. Battery Business and Market Position - The company focuses on lithium iron phosphate batteries, with a significant market share in the A00 vehicle segment. In 2023, the domestic battery installation volume reached 15.90 GWh, a year-on-year increase of 28.1%, ranking fourth in market share [10][32]. - The company has established long-term partnerships with major automotive manufacturers, including SAIC-GM-Wuling and Changan, and has successfully entered the supply chains of Renault-Nissan-Mitsubishi and GAC [30][32]. 4. Research and Development - The company has invested heavily in R&D, with a budget of 2.061 billion yuan in 2023, a year-on-year increase of 14.9%. It has established eight R&D centers globally and holds over 8,654 patents [34][37]. - The company has made significant advancements in battery technology, achieving energy densities of 240 Wh/kg for lithium iron phosphate cells and 360 Wh/kg for ternary cells [34][37].