EBSCN·2024-08-31 04:22Investment Rating - The report maintains a rating of "Buy" for the company [2][3]. Core Views - The company reported a total revenue of 31.68 billion RMB in Q2 2024, reflecting a year-on-year increase of 10.6% and a quarter-on-quarter increase of 23.6%. However, the gross margin decreased by 2.3 percentage points year-on-year and 1.1 percentage points quarter-on-quarter to 19.5% [2]. - The Non-GAAP net profit attributable to the parent company was 1.51 billion RMB, down 44.5% year-on-year but up 17.8% quarter-on-quarter, primarily due to scale effects and internal cost reductions [2]. - The company expects improvements in Q3 2024, with projected delivery volumes between 145,000 and 155,000 units, and plans to launch a new pure electric model in the first half of 2025 [3]. - The report anticipates that the company's gross margin will stabilize and improve due to increased sales volume and a higher proportion of the AD MAX model, despite ongoing market competition [2][3]. Financial Summary - Total revenue is projected to grow from 123.85 billion RMB in 2023 to 143.96 billion RMB in 2024, with a growth rate of 16.2% [4]. - Non-GAAP net profit is expected to decline from 12.09 billion RMB in 2023 to 10.16 billion RMB in 2024, reflecting a decrease of 16.0% [4]. - The company’s total assets are forecasted to increase from 143.47 billion RMB in 2023 to 154.18 billion RMB in 2024 [10]. - The report projects a net cash flow from operating activities of 20.26 billion RMB in 2024, compared to 50.69 billion RMB in 2023 [11]. Market Data - The company's current market capitalization is approximately 18.886 billion USD, with a share price range over the past year between 17.44 and 46.44 USD [5]. - The target price has been adjusted to 20.03 USD, corresponding to about 15 times the projected P/E ratio for 2024 [3].