Nissan Motor(US:NSANY) Huachuang Securities·2024-08-09 14:23Investment Rating - The report assigns a neutral investment rating to Nissan Motor Co., Ltd. (NSANY) for the upcoming period, indicating expectations of performance within a range of -10% to 10% relative to the benchmark index [28]. Core Insights - The report highlights a significant decline in Nissan's financial performance for FY24Q1, with total revenue of 2.998 trillion yen, reflecting a 2.8% increase, while automotive business revenue was 2.68 trillion yen, up 1.8% [5][6]. - The operating profit plummeted by 99% to 1 billion yen, with net profit down 73% to 286 billion yen, primarily due to decreased sales performance in Japan and the U.S. [6][12]. - The company anticipates a slight decrease in total sales volume to 3.65 million units for the year, with specific market expectations indicating a 3.8% decline in China and a 1.4% decline in North America [11]. Financial Summary - Revenue: Total revenue for Q2 was 2.998 trillion yen, with automotive revenue at 2.68 trillion yen [5]. - Profitability: Gross profit for Q2 was 401.3 billion yen, down 19%, with a gross margin of 13%, a decrease of 3.7 percentage points [6]. - Cash Flow: Capital expenditures increased to 100.8 billion yen, while R&D spending rose to 147.9 billion yen [7]. Production and Sales Volume - Global Retail Sales: Total global retail sales reached 787,000 units, with a production decrease of 7.5% to 784,000 units [8]. - Regional Performance: - Japan: Retail sales decreased by 8% to 980,000 units, but new models are expected to stabilize the market [10]. - North America: Retail sales fell by 3.1% to 240,000 units, impacted by delays in model updates [10]. - Europe: Retail sales increased by 7.6% to 79,000 units, with a strong performance in electrified models [10]. - China: Retail sales rose by 3.3% to 167,000 units, despite a challenging competitive environment [10]. New Vehicle Launches - Nissan introduced several new models in Q2, including Ariya NISMO, Kicks, Qashqai, and QX80, enhancing its product lineup [10]. Annual Performance Guidance - The company revised its annual guidance, projecting total production of 3.45 million units and sales of 3.65 million units, with an expected revenue increase to 14 trillion yen [11][12].