SERES(SH:601127) Huaxin Securities·2024-06-27 00:30Investment Rating - The report maintains a "Buy" investment rating for the company [1][5] Core Views - The company achieved a turnaround in net profit for Q1 2024, reporting a net profit of 220 million yuan compared to a loss of 625 million yuan in Q1 2023 [1][2] - Significant improvement in gross margin was noted, with Q1 2024 gross margin at 21.51%, up 12.63 percentage points year-on-year [3][4] - The company successfully penetrated the luxury car market with its AITO brand, particularly with the new M9 model, which has seen over 100,000 pre-orders within six months of launch [4] Financial Performance Summary - In 2023, the company reported total revenue of 35.842 billion yuan, a year-on-year increase of 5.09%, with a net loss of 2.450 billion yuan [2][5] - For Q1 2024, total revenue reached 26.561 billion yuan, representing a year-on-year increase of 421.8% and a quarter-on-quarter increase of 38.6% [2][3] - The company forecasts revenues of 140.196 billion yuan, 166.497 billion yuan, and 195.900 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 2.95 yuan, 3.22 yuan, and 3.85 yuan [5][7] Cost and Expense Management - The sales expense ratio for Q1 2024 decreased to 12.82%, while the management expense ratio fell to 1.70% [3][4] - The company has effectively controlled its operating expenses, contributing to the improved profitability [1][3] Market Position and Growth Potential - The AITO brand, in collaboration with Huawei, is positioned strongly in the high-end new energy vehicle market, with significant growth potential anticipated [5][6] - The company’s sales volume of new energy vehicles reached 150,900 units in 2023, marking a year-on-year growth of 11.75% [4][5]