JAC(SH:600418) Huaxin Securities·2024-07-13 10:02Investment Rating - The report maintains a "Buy" investment rating for the company [6][9]. Core Viewpoints - The first model developed in collaboration with Huawei has entered the vehicle validation stage and is expected to be launched in the first half of next year [2][5]. - The partnership with Huawei is not limited to high-end vehicles but also includes the integration of Huawei's technology into more of JAC's models, enhancing the brand's product offerings [3][4]. - The domestic passenger car market is expanding rapidly, with JAC poised to break into the high-end vehicle segment, which has been dominated by foreign brands [4][5]. Summary by Relevant Sections Basic Data - Current stock price is 19.09 CNY, with a total market capitalization of 41.7 billion CNY and total shares outstanding of 2,184 million [1][2]. Business Development - JAC's collaboration with Huawei is progressing, with the first model expected to roll off the production line by the end of this year [2][5]. - The construction of a world-class smart factory is nearly complete, with a planned annual production capacity of 200,000 vehicles [2]. Market Positioning - The domestic passenger car market saw an increase from 821,000 units in 2022 to 1,004,000 units in 2023, with Chinese brands' market share rising from 6.5% in 2022 to 21.0% in the first five months of 2024 [4]. - JAC aims to leverage its partnership with Huawei to disrupt the high-end vehicle market, which has been largely controlled by foreign manufacturers [4][5]. Financial Forecast - Revenue projections for 2024, 2025, and 2026 are 48.49 billion CNY, 69.20 billion CNY, and 80.71 billion CNY, respectively, with corresponding net profits of 258 million CNY, 585 million CNY, and 969 million CNY [6][10]. - The earnings per share (EPS) are forecasted to be 0.12 CNY, 0.27 CNY, and 0.44 CNY for the years 2024, 2025, and 2026 [10].