In the 1-3Q of 2024, the lithium battery sector achieved a total operating income of 1206.596 billion yuan, -1.39%; a total net profit of 76.09 billion yuan, +0.96% year over year; the average gross margin of the sector was 20.05%, +1.90pct year on year; the average net profit margin of the sector was 6.31%, +0.15 pct year on year.
The Zhitong Finance App learned that Haitong Securities released a research report saying that the overall profit of the lithium battery sector increased slightly in 2024Q3, and the segmented industry was clearly divided. In 2024, the profitability of the lithium battery sector increased in 1-3Q, with significant differentiation in various sectors. Revenue from batteries, precursors, copper foil, aluminum foil, structural parts, and auxiliary materials continued to grow. In 2024, the performance of the lithium battery sector improved year-on-year in Q3, profitability was gradually restored, and the performance of batteries, copper foil, aluminum foil, and structural components continued to grow. I am optimistic about leading midstream companies with cost differentiation capabilities, the solid-state battery industry chain, and companies related to fast charging and 800v technology.
Haitong Securities's main views are as follows:
In 2024, the profitability of the lithium battery sector increased in 1-3Q, and there was significant differentiation in all areas.
In the 1-3Q of 2024, the lithium battery sector achieved a total operating income of 1206.596 billion yuan, -1.39%; a total net profit of 76.09 billion yuan, +0.96% year over year; the average gross margin of the sector was 20.05%, +1.90pct year on year; the average net profit margin of the sector was 6.31%, +0.15 pct year on year.
By sector, in 2024, revenue from batteries, precursors, copper foil and aluminum foil, structural parts, and auxiliary materials continued to grow. The battery sector achieved revenue of 893.486 billion yuan, +5.66% year over year, accounting for 74.05% of the total revenue of the lithium battery sector, +4.94 pct year on year, achieving net profit of 66.451 billion yuan, +16.84% year on year, accounting for 87.33% of the overall net profit of the lithium battery sector, +11.87pct year on year; the precursor sector achieved revenue of 102.825 billion yuan, +2.64% year over year, achieved net profit of 4.729 billion yuan, -3.18%; copper foil achieved revenue of 37.737 billion yuan, +19.42% year over year, net profit to mother -0.51 billion yuan, -179.79% year on year; structural components achieved revenue of 15.667 billion yuan, +11.92% year on year, realized net profit to mother of 1.21 billion yuan, net profit of +20.38% year on year; auxiliary materials sector achieved revenue 8.715 billion yuan, +6.29% YoY, achieving net profit to mother of 0.142 billion yuan, or +264.95% YoY.
In terms of gross margin, in the 1-3Q of 2024, gross margins for batteries, anodes, precursors, and auxiliary materials were 22.43%, 21.36%, 14.66%, and 8.70%, respectively, +2.47pct, +0.79pct, +0.63pct, and +2.70pct, respectively. The gross margin of all other sectors declined to varying degrees. The gross margins of cathode, diaphragm, electrolyte, copper foil, aluminum foil, and structural parts were -0.18pct, -16.21pct, -8.24pct, -3.83pct, and -1.37pct, respectively. The overall gross margin of the lithium battery sector was 20.05%, +1.90pct year-on-year.
In 2024, the performance of the lithium battery sector improved year-on-year in Q3, and profitability gradually recovered.
In the 2024Q3 single quarter, the lithium battery sector achieved total operating income of 449.255 billion yuan, +0.63%; total net profit to mother of 30.061 billion yuan, +5.09% year over year; average gross margin of the sector was 21.34%, +1.91pct year on year; the average net profit margin of the sector was 6.69%, +0.28pct year on year.
By sector, the performance of the 2024Q3 battery, copper foil, and structural parts sector continued to grow. Among them, the battery sector achieved revenue of 340.058 billion yuan, accounting for +9.29% of the sector's total revenue, accounting for +6.00pct, and realized net profit of 26.578 billion yuan to mother, +20.71%, accounting for 88.41% of the sector's total net profit to mother, accounting for 88.41% of the sector's total net profit to mother, accounting for +11.45 pct; the copper foil and aluminum foil segment achieved revenue of 13.985 billion yuan compared to the previous year, +17.62 billion yuan %, net profit to mother -0.213 billion yuan, -432.22% year-on-year; the structural components segment achieved revenue of 5.795 billion yuan, +6.11% year-on-year, and realized net profit of 0.386 billion yuan, or +6.86% year-on-year. Other sector performance declined to varying degrees. Revenue from cathodes, anodes, diaphragms, electrolytes, precursors, and auxiliary materials was -44.51%, -22.38%, -13.72%, -19.90%, -3.29%, and -0.10% year-on-year, and net profit to mother was -110.93%, -30.61%, -72.20%, -70.21%, and +57.36% year-on-year.
In terms of gross margin, gross margins of 2024Q3 anodes, batteries, precursors, and auxiliary materials were +0.60pct, +0.14pct, and +0.52pct, respectively. The gross margins of other areas all declined to varying degrees year-on-year. The gross margins of cathodes, diaphragms, electrolytes, copper foil and aluminum foil, and structural components were -1.35pct, -13.58pct, -6.95pct, -2.31pct, and -1.51pct, respectively. The overall gross margin of the lithium battery sector was 21.34%, +1.91pct year on year.
Investment Strategy:
(1) Leading midstream companies with cost differentiation capabilities: Ningde Times (300750.SZ), Everweft Lithium (300014.SZ), Hunan Yuneng (301358.SZ), Azure Lithium (002245.SZ), Kodali (002850.SZ), Zhenyu Technology (300953.SZ), Tianci Materials (002709.SZ), Shangtai Technology (001301.SZ), Zhongke Electric (300035.SZ), Polyfluoride (002407.SZ) New Zhoubang (300037. SZ), Wanrun New Energy (688275.SH), Longpan Technology (603906.SH), Anda Technology (830809.BJ), Minmetals New Energy (688779.SH), Putailai (), Enjie Co., Ltd. (002812.SZ), Xingyuan Materials (300568.SZ), Zhenhua New Materials (USD), Betray (835185.BJ), German Nano (300769.SZ), etc. 603659.SH 688707.SH
(2) Solid-state battery industry chain: Ningde Era (300750.SZ), Rongbai Technology (688005.SH), Dangsheng Technology (300073.SZ), Xiang Fenghua (300890.SZ), Sanxiang New Materials (603663.SH), Guansheng Co., Ltd. (605088.SH), etc.
(3) Fast charging and 800v technology related companies: Black Cat Co., Ltd. (002068.SZ), Shinde New Materials (301349.SZ), Yuanli (300174.SZ), Mannst (301325.SZ), China Fuse Electric (301031.SZ), etc.
Risk warning: Downstream demand for new energy vehicles falls short of expectations; new technology development falls short of expectations; raw material prices fluctuate; domestic and foreign competition intensifies; industry policy fluctuates.