On the evening of January 24, Funeng Technology (688567. SH) disclosed its 2024 performance forecast, and the company's annual loss decreased by 77.06% to 83.79% year-on-year.

As a global solid-state battery leader, Funeng Technology's performance forecast has many exciting points for investors:

Gross margin improvement. In 2024, the company vigorously promoted the improvement of lean manufacturing management, and strengthened inventory management while effectively reducing costs and increasing efficiency in each production link, so as to promote a significant year-on-year increase in the gross profit margin of the company's products.

The company will further drive the growth of semi-solid-state battery shipments. In 2025, the company will further vigorously promote the growth of semi-solid-state battery shipments. The company's second-generation semi-solid-state battery is expected to be mass-produced in 2025, and the third-generation semi-solid-state battery is being certified and industrialized at the same time.

In terms of the low-altitude economy, the company will drive the growth of eVTOL battery shipments. Funeng Technology is the world's first power battery company to deliver eVTOL products to end customers, and its customers include the leading eVTOL manufacturers in the United States and many well-known domestic manufacturers. In FY2025, the company will further promote the growth of eVTOL cell shipments and the development of new customers.

The prospect of solid-state battery industrialization is further brighter. In terms of the progress of all-solid-state batteries, the company has made great breakthroughs in sulfide and oxide/polymer-based composite system routes. Among them, sulfide all-solid-state batteries have entered the stage of product industrialization and development. In 2025, the company plans to carry out all-solid-state battery scale-up verification.

In the new energy industry, "solid-state batteries" are one of the most promising segments.

For a long time, solid-state batteries have been known as the most promising "next-generation power batteries", with many advantages such as ultra-high energy density of over 400 Wh/kg, ultra-high safety of high temperature resistance and puncture resistance, and wide temperature range working window, which is expected to become the ultimate solution for power batteries.

Funeng Technology is the world's leading solid-state battery company, the company has been deeply engaged in the field of power batteries for more than 20 years, and has been ranked first in the domestic ternary flexible packaging machine volume for 7 consecutive years. As early as 2022, the company launched the first generation of pouch semi-solid-state batteries and installed them in vehicles. At the end of September 2024, Funeng Technology signed a cooperation agreement with Jiangling Group New Energy, and the first "Yi" model equipped with Funeng SPS battery pack officially rolled off the assembly line. At the same time, the two sides also signed a strategic cooperation agreement on solid-state batteries to accelerate the research and development of key technologies.

With the acceleration of the industrialization of solid-state batteries, Funeng Technology will usher in the release of performance.

In addition, after the "surplus" in 2023, the current lithium battery industry continues to recover. The upward dividend of the industry may further boost the performance of Funeng Technology.

It is reported that in the second half of 2024, the production schedule of lithium batteries will continue to increase, and the capacity utilization rate of leading enterprises will increase from 60% in the first half of the year to 80%, or even full production.

On the one hand, the demand for new energy vehicles and energy storage market has picked up more than expected; On the other hand, although the planned production capacity of many lithium battery companies is very high, considering the changes in the expected rate of return, capital and competitive environment, it has not really been implemented, and even a lot of investment has been reduced. In addition, major battery companies have accelerated destocking, and the market supply and demand have rapidly become balanced.

Haitong Securities believes that Funeng Technology is in a critical period of turning losses into profits, and in the future, with the growth of shipments, the expense rate will be controlled, and the profit margin will increase significantly.

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