CHANGAN AUTOMOBILE-B(SZ:000625) Donghai Securities·2024-08-20 11:42Investment Rating - The investment rating for the company is "Buy" (maintained) due to significant developments [2]. Core Insights - The report highlights that Changan Automobile's fuel vehicle business remains solid, and the company is expected to accelerate its electric and intelligent transformation driven by multiple factors, including the launch of new energy products, steady progress in overseas capacity construction, and deepening cooperation with Huawei in smart technology [5][8]. - The forecasted net profits for 2024-2026 are projected to be 9.817 billion, 11.679 billion, and 14.185 billion yuan respectively, with corresponding EPS of 0.99, 1.18, and 1.43 yuan, and PE ratios of 13, 11, and 9 times [5][9]. Summary by Sections Company Overview - Changan Automobile is actively engaging in strategic partnerships, including a significant investment by its subsidiary Avita Technology in Huawei, acquiring a 10% stake in a joint venture for 11.5 billion yuan [8]. - This transaction is expected to enhance the high-end image of the Avita brand and deepen the strategic collaboration with Huawei, facilitating Changan's brand elevation and intelligent transformation [8]. Financial Performance - The company's main revenue is projected to grow from 151.3 billion yuan in 2023 to 267.1 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 25% [9]. - The net profit is expected to experience fluctuations, with a decrease of 13% in 2024, followed by a recovery of 19% and 21% in 2025 and 2026 respectively [9]. Product Development - Avita is set to launch several new models in the second half of 2024, including the Avita 11 & 12 extended range versions and the Avita 07 dual-power version, aimed at meeting diverse consumer needs [8]. - The collaboration with Huawei is anticipated to enhance Avita's smart vehicle capabilities, thereby improving product competitiveness and driving sales growth in the latter half of 2024 [8].