EVE(SZ:300014) AVIC Securities·2024-05-17 01:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 48 yuan [2][5]. Core Insights - The company's revenue for 2023 reached 48.78 billion yuan, a year-on-year increase of 34.4%, while the net profit attributable to shareholders was 4.05 billion yuan, up 15.4% year-on-year [2]. - The company is positioned as a leader in the energy storage sector, benefiting from the global trend towards electric vehicles and a high growth rate in the energy storage market [2][5]. - The company has seen a recovery in profitability since Q2 2023, attributed to its full industry chain layout and improved cost control due to declining lithium carbonate prices [2][5]. Financial Performance - In Q4 2023, the company reported revenue of 13.26 billion yuan, a quarter-on-quarter increase of 5.6% [2]. - The gross margin for 2023 was 17.0%, with a net margin of 9.3% [2]. - The company’s operating cash flow for 2023 was 8.68 billion yuan, significantly improved from 2.86 billion yuan in 2022 [2]. Market Trends - The global electric vehicle market is expected to grow, with sales projected to reach 17.5 million units in 2024, a year-on-year increase of 24.9% [2]. - The domestic electric vehicle market is anticipated to reach 12 million units in 2024, reflecting a growth of 26.4% [2]. - The energy storage market is also expected to see significant growth, with new installations in China projected to reach 35 GW in 2024, a year-on-year increase of 63.9% [2]. Business Segmentation - The company’s revenue from the power battery segment in 2023 was 23.98 billion yuan, with a year-on-year growth of 31.4% [2][18]. - The energy storage segment generated revenue of 16.34 billion yuan, up 73.2% year-on-year [2][18]. - The consumer battery segment is expected to grow at a steady rate of 5% annually [18]. Valuation Metrics - The company’s projected net profits for 2024, 2025, and 2026 are 4.98 billion yuan, 6.41 billion yuan, and 7.75 billion yuan, respectively, with corresponding PE ratios of 20, 16, and 13 [5][6]. - The company’s market capitalization is approximately 76.94 billion yuan, with a total share count of 2,045.72 million shares [2][6].