Summary of Camel Group Conference Call Company Overview - **Company**: Camel Group - **Industry**: Lead-acid and low-voltage lithium battery manufacturing Key Points and Arguments Growth Logic - Camel Group is transitioning from the lead-acid battery aftermarket to low-voltage lithium batteries, which have an average selling price (ASP) 3-5 times higher than lead-acid batteries, significantly enhancing overall growth potential [3][4][7] Financial Performance - In 2024, Camel Group achieved a revenue of 15.6 billion yuan, a year-on-year increase of approximately 11%, and a net profit of 614 million yuan, up 7.3% year-on-year [4][5] - For Q1 2025, the company expects profits between 223 million and 255 million yuan, representing a year-on-year growth of 43%-63% [4][6] Low-Voltage Lithium Battery Market - The ASP for low-voltage lithium batteries is around 800-1,500 yuan, which is 3-5 times that of lead-acid batteries, indicating substantial market potential [4][7] - The automotive market is seeing increased concentration, which favors the penetration of low-voltage lithium batteries [4][9] Market Trends - The introduction of models with NOA (Navigation on Autopilot) features by companies like Changan, Geely, and BYD is expected to significantly boost low-voltage lithium sales in 2025 [4][8] - The replacement market for lead-acid batteries is gradually expanding, providing Camel Group with notable gains [4][10][12] Research and Development - Camel Group is continuously investing in R&D and production capacity for low-voltage lithium batteries and is actively expanding overseas to mitigate global trade risks [4][13] Future Projections - Revenue growth for the next two years is expected to be between 10% and 15%, with projected earnings of 860 million to 1 billion yuan [4][14] - The company maintains a low valuation of around 10 times earnings, indicating potential for growth [4][14] Risks - Potential risks include slower-than-expected global economic growth, lower automotive production and sales, and significant increases in raw material prices, which could impact business and performance [4][15] Additional Important Insights - The lead-acid battery aftermarket continues to provide substantial profit and cash flow, despite limited growth in the front-end market [4][5][10] - The competitive landscape in the lead-acid battery market is stable, dominated by three major players, which could ensure continued demand even with modest growth rates [4][12]