CHANGAN AUTOMOBILE-B(SZ:000625) Minsheng Securities·2024-10-29 12:49Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The company reported total revenue of 110.96 billion yuan for the first three quarters of 2024, a year-on-year increase of 2.5%, while the net profit attributable to shareholders decreased by 63.8% year-on-year to 3.58 billion yuan [1] - The third quarter of 2024 saw total revenue of 34.24 billion yuan, down 19.8% year-on-year and 13.8% quarter-on-quarter, primarily due to a decline in sales volume [1] - The company is accelerating its transition to electric and intelligent vehicles, with strong demand for new models such as the Avita 07 and Deep Blue S05, which have received significant pre-orders [1] Summary by Sections Financial Performance - For Q3 2024, the company's gross margin improved to 15.7%, benefiting from cost reduction efforts, despite a year-on-year decline of 2.7 percentage points [1] - The average selling price (ASP) for vehicles in Q3 2024 was 92,000 yuan, remaining stable compared to the previous quarter [1] - The company’s sales expenses increased significantly due to the launch of new models, with the sales expense ratio rising to 4.8% in Q3 2024 [1][6] Sales and Production - The company sold 339,000 self-owned passenger vehicles in Q3 2024, a decrease of 17.4% year-on-year and 11.9% quarter-on-quarter [1][6] - The sales of self-owned new energy vehicles reached 149,000 units, marking a year-on-year increase of 13.7% [1][6] Future Outlook - The company expects revenues of 163.01 billion yuan in 2024, with a projected net profit of 6.07 billion yuan, reflecting a significant recovery in subsequent years [2][8] - The report anticipates that the company's EPS will be 0.61 yuan in 2024, with a PE ratio of 22 times based on the closing price of 13.40 yuan per share on October 29, 2024 [2][8]