The company announced the results of the 24th annual report: revenue of 45.042 billion yuan, a year-on-year increase of -5.67%; The net profit attributable to the parent company was 1.555 billion yuan, a year-on-year increase of -32.54%. Among them, Q4 revenue was 12.154 billion yuan, -4.18%/+7.89% year-on-year/month-on-month; The net profit attributable to the parent company was 90.3313 million yuan, a year-on-year/month-on-month increase of -84.77%/-66.54%. The performance of the company's annual report is basically in line with the performance express. We are optimistic about the growth of the company's lead-acid battery shipments under the background of the dual policies of the two-wheeler industry in 25 years, and at the same time, the accelerated expansion of emerging products and overseas markets will enable long-term growth. Maintain "Buy" rating.

The company's revenue declined in 24 years (-5.67% year-on-year) due to the decline in revenue in 24 years (-5.67% year-on-year), mainly due to the fact that the downstream two-wheeler industry policies did not implement to suppress demand, and the sales of lead-acid batteries declined (-9.04% year-on-year); The decline in net profit attributable to the parent company was greater than that of revenue, mainly due to the decline in gross profit margin. The gross profit margin in 24 years was 15.10%, a year-on-year increase of -2.45pct, mainly due to 1) a sharp increase in the price of raw materials, and 2) the transfer of the warranty from sales expenses to sales costs, we estimate that the gross profit margin of the original caliber is about 16.38%. During the period, the R&D expense rate increased more, +0.41pct year-on-year, mainly due to the strengthening of technology research and development. It is optimistic that the company's profitability will be restored with the improvement of downstream demand and its own capacity utilization. The

dual policy of the two-wheeled vehicle industry is good for the application of lead-acid batteries, and the energy storage market implements the lead-carbon + lithium battery dual route in the field of two-wheeled vehicles. As a leading enterprise of lead-acid batteries for two-wheeled vehicles, the company is expected to fully benefit from the growth of downstream demand. In the field of energy storage, the company provides "lead carbon + lithium battery" dual technical route solutions to meet the needs of diversified application scenarios and actively grasp the opportunities of the rapid development of the global energy storage market.

In terms of actively developing overseas markets and expanding the overseas layout of new batteries such as hydrogen fuel/sodium electricity/solid-state batteries, the company's Vietnam assembly plant has completed trial production in 24 years, the preliminary construction of import and export logistics capacity has been completed, and the construction of self-built factories has started, which is conducive to supporting the needs of overseas markets such as Southeast Asia and steadily promoting the process of globalization. At the same time, the company actively builds an industrial ecosystem with lead-acid batteries as the core, expands application scenarios, and is optimistic about the growth potential brought by new products to the company. 24 years to achieve small batch delivery of hydrogen fuel cell engine systems in loader and bus scenarios; Enrich the matrix of sodium electric products; Actively promote the commercialization of solid-state batteries in the fields of drones (to achieve a breakthrough in order sales) and robots.

Profit Forecast and Valuation

We lowered the company's net profit attributable to the parent company in 25-26 years to 2.290 billion yuan/2.861 billion yuan (down 15.41%/10.24% respectively), and estimated the net profit attributable to the parent company in 27 years to be 3.298 billion yuan; The corresponding EPS is 2.36/2.94/3.39 yuan. The downward adjustment is due to the lag in the adjustment of product prices after the repair of raw material prices and the ramp-up of new plant capacity. Referring to the 25-year Wind consensus expectation of comparable companies with an average PE of 15.37 times, the company is given a 25-year PE of 15.37 times, and the target price is raised to 36.21 yuan (the previous value is 35.99 yuan, corresponding to 12.37 times PE in 25 years).

Risk warning: the risk of intensified market competition; The progress of new technologies is not as expected; Raw materials rise sharply risk.