SUNWODA(300207) 天风证券·2024-10-07 02:38Investment Rating - The report initiates coverage on the company with a "Buy" rating and sets a target price of 27.04 yuan [5][20] Core Views - The company's performance in H1 2024 was strong, driven by improved profitability in the consumer battery segment, with revenue reaching 23.9 billion yuan, up 8% YoY, and net profit attributable to shareholders reaching 820 million yuan, up 88% YoY [1][12] - The consumer battery segment is benefiting from an upward industry cycle, with global smartphone and PC sales growing by 6.5% and 5% respectively in H1 2024, and AI-driven demand expected to further boost growth [2][16] - The company's self-supply rate for consumer battery cells has increased to 35%, contributing to a 4.14 percentage point YoY increase in gross margin for the consumer battery segment to 18.07% [2][16] - The power and energy storage battery segment is gaining traction with new customers, including domestic and international automakers, and is expected to transition from losses to profitability as new clients ramp up [2][17] Financial Performance and Projections - The company's H1 2024 revenue was 23.9 billion yuan, with consumer batteries contributing 13.2 billion yuan, accounting for 55% of total revenue [1] - The company's power battery shipments in H1 2024 reached 8.33GWh, up 67% YoY, with revenue from this segment reaching 6.2 billion yuan, up 20% YoY [15] - Revenue from the energy storage system segment in H1 2024 was 595 million yuan, up 31.5% YoY [15] - The report forecasts revenue of 52.8 billion yuan, 58.6 billion yuan, and 64.8 billion yuan for 2024, 2025, and 2026 respectively, with YoY growth rates of 10%, 11%, and 10% [3][18] - Net profit attributable to shareholders is projected to be 1.9 billion yuan, 2.3 billion yuan, and 2.8 billion yuan for 2024, 2025, and 2026, with YoY growth rates of 80%, 19%, and 21% [3][18] Industry and Market Trends - The consumer electronics market is recovering, with AI-driven devices expected to further boost demand for lithium batteries [2][16] - The company's power and energy storage battery segment is expanding its customer base, including partnerships with major automakers such as Geely, Dongfeng, Li Auto, and international clients like Renault and Nissan [2][17] - The company has secured supply agreements with Volvo and Volkswagen, indicating strong growth potential in the power and energy storage battery market [2][17] Valuation and Comparables - The report values the company at 26X PE for 2024, based on comparable companies such as CATL, Eve Energy, and Zhuhai CosMX, which have an average valuation of 26X PE [20][21]