ECARX(ECX) 东吴证券国际·2024-08-20 08:39Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $6 [1]. Core Insights - The company reported Q2 2024 financial results that met expectations, achieving revenue of 1.26 billion yuan, a year-on-year increase of 31%, with a gross margin of 23%, up 1 percentage point quarter-on-quarter [2]. - Revenue growth is attributed to the continuous mass production of vehicles equipped with the company's technology products, which have been installed in over 6.9 million vehicles globally, representing a 32% year-on-year increase [4]. - The company is expected to achieve total revenues of 5.85 billion yuan in 2024, 8.2 billion yuan in 2025, and 10.53 billion yuan in 2026, with corresponding price-to-sales ratios of 1.2, 0.9, and 0.7 [2]. Financial Performance Summary - For 2023, the company reported total revenue of 4.666 billion yuan, with a projected increase to 5.852 billion yuan in 2024, 8.201 billion yuan in 2025, and 10.530 billion yuan in 2026, reflecting growth rates of 31.2%, 25.4%, 40.1%, and 28.4% respectively [2][6]. - The net profit attributable to the parent company is projected to improve from a loss of 940 million yuan in 2023 to a profit of 295 million yuan in 2026, indicating a significant turnaround [2][6]. - The company’s earnings per share are expected to turn positive, reaching 0.11 yuan in 2025 and 0.87 yuan in 2026 [2]. Strategic Developments - The company has accelerated its global strategy, with five new projects focused on overseas models, including a collaboration with a well-known European automaker [4]. - A new manufacturing base in Fuyang, Zhejiang, commenced mass production in April 2024, marking a key milestone in enhancing the company's vertical integration and supply chain capabilities [4].