CHANGAN AUTOMOBILE-B(SZ:000625) Huaxin Securities·2024-06-26 23:00Investment Rating - The report maintains a "Buy" investment rating for the company [5][11]. Core Insights - The company demonstrated robust revenue performance in 2023 and Q1 2024, with total revenue of CNY 151.298 billion in 2023, a year-on-year increase of 24.78%, and a Q1 2024 revenue of CNY 37.023 billion, a year-on-year increase of 7.14% [5][6]. - The company is accelerating its electrification and overseas expansion efforts, achieving a total sales volume of 2.553 million vehicles in 2023, a year-on-year increase of 8.8%, with significant growth in new energy vehicle sales and exports [6][7]. - The company plans to launch multiple new and updated products in 2024, reinforcing its position in the new energy market and transitioning towards a smart low-carbon mobility technology company [8]. Financial Performance Summary - In 2023, the company achieved a net profit of CNY 11.327 billion, a year-on-year increase of 45.25%, while Q1 2024 net profit dropped to CNY 1.158 billion, a year-on-year decrease of 83.39% due to reduced investment income [5][6]. - The gross profit margin for 2023 was 18.36%, down 2.13 percentage points year-on-year, while Q1 2024 gross profit margin further decreased to 14.41% [5][6]. - The company forecasts revenues of CNY 185.067 billion, CNY 219.786 billion, and CNY 256.314 billion for 2024, 2025, and 2026 respectively, with corresponding EPS of CNY 1.08, CNY 1.29, and CNY 1.57 [10][12]. Strategic Initiatives - The company is implementing a "1+5+2" global layout strategy, targeting sales of 300,000 vehicles in Southeast Asia, 300,000 in Europe, and 200,000 in Latin America by 2030 [9]. - The company aims to enhance its brand presence and local operations in various regions, including establishing a sales company in Mexico and setting up a subsidiary in the Middle East [9][10].