Core Points - Ningde Times has obtained the overseas issuance and listing filing notice from the China Securities Regulatory Commission, marking a significant step in its Hong Kong listing process, which took only 25 days, one of the fastest records in recent years [1] - The company aims to become one of the largest IPOs in Hong Kong in recent years, reflecting strong investor interest and recognition of its fundamentals, market position, and technological advantages [1] Group 1 - In 2024, Ningde Times achieved operating revenue of 362 billion yuan and a net profit attributable to shareholders of 50.7 billion yuan, representing a year-on-year growth of 15.01% [2] - The company has maintained its position as the global leader in both power batteries and energy storage batteries, ranking first in power battery usage for eight consecutive years from 2017 to 2024, with a global market share of 37.9% in 2024 [2] - Ningde Times has continuously innovated, launching several new products in 2024, including the Shenxing Plus battery and the new generation Kirin high-power battery, covering various sectors such as passenger vehicles, commercial vehicles, and energy storage [2] Group 2 - The company plans to distribute 50% of its net profit attributable to shareholders, amounting to 25.4 billion yuan, as annual cash dividends and special cash dividends, demonstrating a strong commitment to long-term value [2] - The Hong Kong listing process is expected to further broaden the company's financing channels and accelerate its global strategic layout, injecting new momentum into its future innovation and development [2]

Investment Rating - The investment rating for the company is "Strongly Recommended" [15] Core Views - The company achieved a revenue of 362.01 billion yuan in 2024, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders was 50.75 billion yuan, an increase of 15.0% year-on-year [4][6] - The company maintains strong profitability with an overall gross margin of 24.44%, up 1.53 percentage points year-on-year, driven by lower raw material costs and the contribution of high-end products [8][9] - The company is positioned as a global leader in lithium battery technology, with a comprehensive market layout and ongoing product innovation [11] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 362.01 billion yuan, with a breakdown of 253.04 billion yuan from the power battery segment (down 11.3% year-on-year), 57.29 billion yuan from the energy storage segment (down 4.4%), and 28.70 billion yuan from battery materials and recycling (down 14.6%) [4][8] - The company sold 475 GWh of lithium-ion batteries in 2024, a year-on-year increase of 21.8%, with power battery system sales of 381 GWh (up 18.9%) and energy storage battery system sales of 93 GWh (up 34.3%) [8] Profitability Metrics - The net profit margin for 2024 was 14.92%, an increase of 3.26 percentage points year-on-year [9] - The company’s return on equity (ROE) for 2024 was 20.6%, with projections for 2025 and beyond indicating continued strong profitability [13] Future Projections - Revenue is projected to recover in 2025 with an expected increase of 27.3% to 460.70 billion yuan, followed by further growth in subsequent years [6][13] - The net profit attributable to shareholders is expected to reach 66.26 billion yuan in 2025, reflecting a growth rate of 30.6% [6][13] Market Position and Strategy - The company is actively expanding its product lines and market presence, with new innovations in passenger and commercial vehicle batteries, as well as energy storage solutions [11] - Strategic partnerships and global capacity expansion are underway, with new factories being established in Hungary and Spain [11]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting the stock to outperform the market by over 20% within the next six months [13]. Core Views - The company achieved a revenue of 362.01 billion yuan in 2024, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders increased by 15.0% to 50.75 billion yuan [4][6]. - The report highlights that the company's battery sales are steadily increasing, with a total lithium-ion battery sales volume of 475 GWh in 2024, representing a year-on-year growth of 21.8% [8]. - The overall gross margin improved to 24.44%, up 1.53 percentage points year-on-year, driven by lower raw material costs and the contribution of high-end products [8][9]. - The company is positioned as a global leader in lithium battery technology, with a comprehensive market layout and strong growth potential in the global lithium battery market [9]. Financial Performance Summary - **Revenue and Profitability**: - 2024 revenue: 362.01 billion yuan, down 9.7% year-on-year [6]. - 2024 net profit: 50.75 billion yuan, up 15.0% year-on-year [4]. - Gross margin: 24.44%, up 1.53 percentage points [8]. - Net margin: 14.92%, up 3.26 percentage points [9]. - **Future Projections**: - Expected revenue growth of 27.3% in 2025, reaching 460.70 billion yuan [6]. - Projected net profit for 2025: 66.26 billion yuan, a growth of 30.6% [6]. - **Key Financial Ratios**: - Return on Equity (ROE) for 2024: 20.6% [11]. - Price-to-Earnings (P/E) ratio for 2025: 17.2 [11]. Business Segment Performance - **Battery Segments**: - Power battery revenue: 253.04 billion yuan, down 11.3% year-on-year, accounting for 69.9% of total revenue [8]. - Energy storage system revenue: 57.29 billion yuan, down 4.4% year-on-year, accounting for 15.8% of total revenue [8]. - Battery materials and recycling revenue: 28.70 billion yuan, down 14.6% year-on-year, accounting for 7.9% of total revenue [8]. - **Sales Volume**: - Power battery system sales: 381 GWh, up 18.9% year-on-year [8]. - Energy storage battery system sales: 93 GWh, up 34.3% year-on-year [8]. Investment Outlook - The company is expected to benefit from the growing global demand for lithium batteries, with a strong focus on technology and cost control advantages [9]. - The report suggests a downward adjustment in profit forecasts for 2025 and 2026, with net profit estimates of 66.26 billion yuan and 79.73 billion yuan, respectively [9].