Haitong Securities·2024-07-23 01:31Investment Rating - The report maintains an "Outperform" rating for the company [1][48]. Core Insights - The company has demonstrated strong sales momentum, with 2023 sales exceeding 1.68 million units, a year-on-year increase of 17.7%, and 2024 sales in the first five months reaching nearly 790,000 units, a 45% increase [3][16]. - The company is continuously iterating its technology platforms, investing over 20 billion RMB in the SEA architecture to create a leading global smart electric vehicle technology [20][22]. - The company is beginning to realize its smart technology outcomes, with the launch of the Starry AI model and the Starry Smart Driving system, enhancing its competitive edge in the automotive industry [33][38]. Sales Growth Momentum - In 2023, the company achieved sales of over 1.68 million units, with a 17.7% year-on-year growth, and 48.7 million units of new energy vehicles, accounting for 28.9% of total sales [3][16]. - The Zeekr brand saw a remarkable 65% increase in sales in 2023, with 11.9 million units sold, and a 112% increase in the first five months of 2024 [7]. - The Lynk & Co brand achieved over 220,000 units in 2023, a 22% increase, with 10.2 million units sold in the first five months of 2024, marking a 55% increase [10]. - The Galaxy series under the Geely brand sold 83,500 units in 2023, with 65,000 units sold in the first five months of 2024 [13]. - The company exported 274,000 units in 2023, a 38% increase, and 162,000 units in the first five months of 2024, a 69% increase [16]. Technology Platform Iteration - The SEA architecture is designed to break traditional automotive boundaries, focusing on user experience and integrating hardware, systems, and ecosystems [20]. - The Haohan-M architecture, with an 80% space utilization rate, redefines the spatial efficiency of electric vehicles [22][23]. - The e-CMA intelligent architecture integrates advanced safety features and self-developed software capabilities [27]. - The GEA global intelligent new energy architecture supports various energy forms, achieving comprehensive electrification [28]. Smart Technology Outcomes - The Starry Intelligent Computing Center enhances R&D efficiency by 20%, with a total cloud computing power of 10.2 billion operations per second as of April 2024 [33]. - The Starry AI model is the first full-stack self-developed AI model in the automotive industry, achieving a 4+ rating in the official evaluation by the China Academy of Information and Communications Technology [35]. - The AI digital chassis enables advanced driving features, including autonomous drifting and crab mode [37]. - The Zeekr Haohan Smart Driving system received an L3 autonomous driving test license in June 2024, successfully passing various tests [38]. Earnings Forecast and Investment Recommendations - The company is expected to maintain strong sales growth, with projected net profits of 7.35 billion RMB, 11.62 billion RMB, and 15.68 billion RMB for 2024-2026 [43]. - The report estimates an EPS of 0.73 RMB, 1.15 RMB, and 1.56 RMB for the same period, with a target price range of 11.77 to 14.12 HKD based on a 15-18x PE ratio for 2024 [43][44].