EVE(300014) SINOLINK SECURITIES·2024-10-25 11:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][11]. Core Views - The company reported a revenue of 34.05 billion yuan for the first three quarters of 2024, a year-on-year decrease of 4.2%, while the net profit attributable to shareholders was 3.19 billion yuan, down 6.9% year-on-year [2]. - The gross margin improved significantly in Q3, reaching 19.0%, driven by increased utilization rates and reduced raw material costs [3]. - The energy storage segment's profitability exceeded expectations, with a net profit margin over 10% due to improved operational efficiency [3]. - Future outlook includes full production and sales in energy storage, with new capacity expected to come online in December 2024 [3]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 12.39 billion yuan, a decrease of 1.3% year-on-year, but a slight increase of 0.4% quarter-on-quarter [2]. - The net profit for Q3 was 1.05 billion yuan, down 17.4% year-on-year, but the non-recurring net profit was 1.00 billion yuan, up 11.4% year-on-year [2]. Operational Analysis - The gross margin for the first three quarters of 2024 was 17.4%, an increase of 0.6 percentage points year-on-year, with a non-recurring net profit margin of 7.3% [3]. - The company shipped 7.2 GWh of power batteries and 14.8 GWh of energy storage batteries in Q3, with energy storage profitability significantly improving [3]. Future Outlook - The company plans to maintain full production and sales in the energy storage segment, with new production capacity expected to be operational by December 2024 [3]. - The power battery sales are anticipated to increase in Q4 due to the launch of new vehicle models, with expectations for full production by Q2-Q3 of the following year [3]. - The consumer battery segment is currently operating at full capacity, with expected production increases from the Malaysian factory in 2025 [3]. Valuation and Earnings Forecast - The projected net profits for the company from 2024 to 2026 are 4.35 billion, 5.68 billion, and 7.29 billion yuan, respectively, with corresponding P/E ratios of 21, 16, and 13 [4].