CSC SECURITIES (HK) LTD·2024-07-11 08:30Investment Rating - The report assigns a "BUY" rating for the company, indicating a positive outlook for potential price appreciation [4][5]. Core Insights - The company is expected to achieve a net profit of RMB 6.5-7.3 billion for the first half of 2024, representing a year-over-year increase of 377%-436%. The adjusted net profit is projected to be RMB 5-6 billion, with a year-over-year growth of 567%-700% [4][5]. - The company is accelerating its product introduction in overseas markets, with significant growth in sales expected due to an expanding sales network and increased market share [4]. - The company is also focusing on smart transformation, launching new intelligent driving systems and collaborating with Huawei for advancements in smart cockpit technology [4][5]. Financial Performance - The company reported a 7.8% year-over-year increase in vehicle sales for the first half of 2024, with total sales reaching 559,700 units. Export sales saw a remarkable growth of 63% during the same period [5]. - The Tank brand has shown exceptional performance, with sales increasing by 99% year-over-year, making it the top-selling SUV in the off-road vehicle segment [5]. - The projected net profits for 2024, 2025, and 2026 are RMB 12.6 billion, RMB 15.5 billion, and RMB 18.6 billion, respectively, with year-over-year growth rates of 79%, 23%, and 20% [6][10]. Valuation Metrics - The current price-to-earnings (P/E) ratios for A-shares are projected to be 18, 14, and 12 for 2024, 2025, and 2026, respectively. For H-shares, the P/E ratios are expected to be 7.6, 6.1, and 5.1 for the same years [4][6]. - The earnings per share (EPS) estimates for the next three years are RMB 1.47, RMB 1.81, and RMB 2.18, reflecting strong growth potential [6][10].