Great Power(300438) 华创证券·2024-09-09 13:15Investment Rating - The report downgrades the investment rating of PengHui Energy to "Recommend" due to higher PE valuation compared to industry peers [1] Core Views - H1 2024 revenue was 3.773 billion yuan, down 13.75% YoY, with net profit attributable to parent company of 42 million yuan, down 83.41% YoY [1] - Inventory impairment of 115 million yuan significantly impacted H1 performance, mainly due to declining battery cell prices [1] - Energy storage battery shipments grew rapidly in H1 2024, driven by large-scale and communication energy storage, while household storage declined [1] - The company is actively developing new battery technologies, including solid-state and sodium-ion batteries [1] Financial Performance - Q2 2024 revenue was 2.176 billion yuan, up 36.25% QoQ and 15.79% YoY [1] - H1 2024 credit and asset impairment provisions totaled 145 million yuan [1] - 2024-2026 forecasted net profit attributable to parent company: 175/369/497 million yuan [1] - Current PE ratios for 2024-2026: 72/34/25 times [1] Market Position - The company has over 20 years of experience in battery industry with diversified layout in energy storage, communication, consumer, and power sectors [1] - Strong customer resources in large-scale, household, portable, and commercial energy storage sectors [1] Technology Development - Launched 20Ah and 2000mAh soft-pack all-solid-state batteries on August 28 [1] - Introduced low-temperature household storage battery and 590Ah large-capacity power storage cell [1] - Using oxide composite solid electrolyte to enhance battery safety and reduce costs [1] Financial Forecasts - 2024-2026 revenue forecast: 7.532/8.035/9.258 billion yuan [2] - 2024-2026 EPS forecast: 0.35/0.73/0.99 yuan [2] - 2024-2026 ROE forecast: 3.2%/6.8%/9.9% [5] Valuation Metrics - Current market cap: 12.508 billion yuan [3] - 12-month high/low price: 36.70/16.41 yuan [3] - PB ratio: 2.3 times [2] - EV/EBITDA: 25/17/14/13 times for 2023A-2026E [5]