EBSCN·2024-08-26 13:48Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Insights - The company's 2Q24 performance met expectations, with revenue increasing by 60% year-on-year and 24% quarter-on-quarter to 8.11 billion RMB. Gross margin improved by 17.9 percentage points year-on-year and 1.1 percentage points quarter-on-quarter to 14.0%. Non-GAAP net loss decreased by 54% year-on-year and 13% quarter-on-quarter to 1.22 billion RMB [2]. - Vehicle deliveries and gross margins continued to improve, with automotive revenue rising by 54% year-on-year and 23% quarter-on-quarter to 6.82 billion RMB. The average selling price (ASP) increased by 18% year-on-year but decreased by 11% quarter-on-quarter to 226,000 RMB, with delivery volume up by 30% year-on-year and 38% quarter-on-quarter to 30,000 units. The automotive business gross margin improved by 15.0 percentage points quarter-on-quarter to 6.4% [2]. - The company is focusing on new model launches and overseas market expansion, with the new brand Mona's first model set to launch on August 27, and the next-generation autonomous driving hardware platform model P7+ expected to be delivered in 4Q24. Management indicated that the order performance for Mona M03 exceeded that of G6 during the same period [2][3]. Summary by Sections Financial Performance - 2Q24 total revenue reached 8.11 billion RMB, with a year-on-year growth rate of 60% and a quarter-on-quarter growth rate of 24% [2]. - Non-GAAP net loss for 2Q24 was 1.22 billion RMB, a reduction of 54% year-on-year and 13% quarter-on-quarter [2]. - The company had approximately 37.3 billion RMB in cash and cash equivalents at the end of 2Q24 [2]. Future Outlook - The launch of new models, including Mona M03 and P7+, is expected to drive delivery volume improvements in the second half of 2024. The overseas delivery ratio reached over 10% in 2Q24 and is projected to reach 15% in 3Q24 [2]. - The management expects overall gross margin to reach low double digits in 2H24, supported by ongoing collaboration with Volkswagen [2][3]. Profitability Projections - The report adjusts the 2024E and 2025E Non-GAAP net profit estimates to -5.59 billion RMB and -1.09 billion RMB, respectively, while raising the 2026E estimate to 6.48 billion RMB [3].