SAIC MOTOR(600104) 东方证券·2024-09-18 01:42Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 15.86 CNY [1] Core Views - The company's performance is in line with expectations, with a reported revenue of 277.086 billion CNY for the first half of the year, a year-on-year decrease of 12.4%. The net profit attributable to the parent company was 6.628 billion CNY, down 6.5% year-on-year [4] - The gross margin and expense ratio are under pressure, but cash flow has significantly improved, with a net cash flow from operating activities of 11.317 billion CNY, a year-on-year increase of 64.2% [4] - Sales pressure from SAIC-GM affects investment income, while the transformation of joint venture brand structures continues. Investment income in Q2 was 5.727 billion CNY, up 79.5% year-on-year [4] - The company is set to launch new self-owned electric vehicle models in the second half of the year and is deepening its overseas market efforts to address challenges [4] Financial Summary - Revenue (in million CNY): 720,988 (2022A), 726,199 (2023A), 738,063 (2024E), 770,275 (2025E), 804,845 (2026E) [4] - Net profit attributable to the parent company (in million CNY): 16,118 (2022A), 14,106 (2023A), 13,974 (2024E), 14,087 (2025E), 15,483 (2026E) [4] - Earnings per share (CNY): 1.39 (2022A), 1.22 (2023A), 1.21 (2024E), 1.22 (2025E), 1.34 (2026E) [4] - The company’s gross margin is projected to improve from 10.2% in 2023A to 11.0% in 2026E [4]