Tianfeng Securities·2024-09-19 00:38Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [6]. Core Views - The company is expected to see a gradual recovery in demand, leading to an upward trend in annual performance, with Q2 total revenue reaching 31.7 billion RMB, a year-on-year increase of 10.6% and a quarter-on-quarter increase of 23.6% [1][2]. - The overall gross margin is reported at 19.5%, with vehicle gross margin at 18.7%, exceeding market expectations [1][2]. - The company delivered 108,581 vehicles in Q2, marking a year-on-year growth of 25.5%, and has increased its market share in the new energy vehicle segment priced above 200,000 RMB [1][2]. Summary by Sections Financial Performance - Q2 total revenue was 31.7 billion RMB, with automotive sales revenue at 30.3 billion RMB, reflecting a year-on-year growth of 8.4% [1]. - Net profit for Q2 was 1.1 billion RMB, a decrease of 52.3% year-on-year but an increase of 86.2% quarter-on-quarter [1][2]. - Non-GAAP net profit was 1.5 billion RMB, down 44.9% year-on-year but up 17.8% quarter-on-quarter [1][2]. Vehicle Sales - The company achieved a total delivery of 108,581 vehicles in Q2, with a year-on-year increase of 25.5% [1][2]. - The market share in the new energy vehicle segment above 200,000 RMB increased from 13.6% in Q1 to 14.4% in Q2 [1][2]. Future Outlook - The guidance for Q3 vehicle deliveries is between 145,000 and 155,000 units, representing a year-on-year growth of 38.0% to 47.5% [2]. - Total revenue guidance for Q3 is set between 39.4 billion and 42.2 billion RMB, indicating a year-on-year growth of 13.7% to 21.6% [2]. - The company aims to achieve an overall gross margin target of 20% and expects R&D expenses to remain below 12 billion RMB for the year [2].