SAIC MOTOR(SH:600104) Xin Lang Cai Jing·2025-12-02 14:37Core Viewpoint - The Shanghai Stock Exchange and China Securities Index Co., Ltd. announced adjustments to several indices, including the inclusion of SAIC Motor Corporation into the SSE 50 Index, effective after market close on December 12, 2025, following a recovery in sales after a challenging 2024 [1] Group 1: Company Performance - In 2024, SAIC Motor faced significant operational pressure, with a 28.3% year-on-year decline in self-owned passenger vehicle sales and a halving of sales for the joint venture SAIC-GM [1] - From January to November 2025, SAIC Motor's total sales reached 4.108 million vehicles, a year-on-year increase of 16.4%, with November sales at 461,000 vehicles, marking the second position among Chinese brands and achieving four consecutive months of month-on-month growth [1] - The company benefited from international expansion, with overseas sales in the first eleven months of 2025 reaching 969,000 vehicles, a year-on-year increase of 3.4%, and November sales of 107,000 vehicles, up 13.9% year-on-year [1] - The MG brand emerged as the best-selling Chinese brand in the European market, with cumulative deliveries of 285,000 vehicles in 2025, representing over 25% year-on-year growth [1] Group 2: Market Dynamics - The passenger vehicle retail sales in November 2025 were approximately 2.25 million units, reflecting an 8.7% year-on-year decline, indicating a potential bottoming out of pessimistic expectations in the sector [2] - SAIC Motor's stock price has experienced a significant correction, with a nearly 30% decline from its peak earlier in the year, and the current price-to-book ratio (PB) stands at 0.60, with expected price-to-earnings ratios (PE) of 15.6 and 12.8 for 2025 and 2026, respectively, below the industry average [2] Group 3: Strategic Initiatives - In February 2025, SAIC signed a deep cooperation agreement with Huawei to develop the Shangjie brand, with the first model, H5, launched in September 2025, achieving over 10,000 deliveries within 43 days [2] - The H5 model saw sales of 5,712 and 12,029 units in September and October, respectively, indicating a trend of continuous growth [2] - The Shangjie brand plans to launch multiple new models in 2026, which is expected to enhance user base and contribute positively to sales and valuation [2] Group 4: Financial Projections - Revenue projections for SAIC Motor from 2025 to 2027 are estimated at 651.43 billion, 739.83 billion, and 822.04 billion yuan, representing year-on-year growth rates of 3.8%, 13.6%, and 11.1% respectively [3] - The projected net profit attributable to shareholders for the same period is 11.39 billion, 13.45 billion, and 15.51 billion yuan, with year-on-year growth rates of 583.6%, 18.1%, and 15.3% respectively [3]