CHANGAN AUTOMOBILE-B(SZ:000625) Donghai Securities·2024-10-30 07:46Investment Rating - The report maintains a "Buy" rating for Changan Automobile [4] Core Views - The third quarter performance of Changan Automobile shows continued cost reduction and increased R&D investment, with Q4 expected to be a turning point for performance [4][9] - The company's Q1-Q3 revenue reached 110.96 billion yuan, a year-on-year increase of 2.54%, while net profit attributable to shareholders dropped by 63.78% to 3.58 billion yuan [5][9] Summary by Sections Financial Performance - In Q3 2024, Changan Automobile reported a revenue of 34.24 billion yuan, a decrease of 19.85% quarter-on-quarter and 13.76% year-on-year [7][8] - The net profit for Q3 2024 was 748 million yuan, down 66.44% quarter-on-quarter and 55.30% year-on-year [5][9] - The operating cash flow decreased by 74.86% year-on-year, primarily due to increased payments to suppliers [7] Revenue and Sales - The decline in sales volume impacted revenue, with Q3 being a traditional off-season for car sales [7] - The proportion of new energy vehicles in self-owned brand sales increased compared to Q2, with average selling price (ASP) remaining stable [7] Cost and Margin - The gross margin for Q3 2024 was reported at 15.69%, an increase of 2.46 percentage points from Q2 [8] - The company achieved significant cost reduction across the entire supply chain [8] R&D and Expenses - R&D expenses increased as the company accelerated its transition to smart electric vehicles, with R&D expense ratio rising [8] - The company launched new technologies such as the "Changan Smart Drive" system in October, indicating ongoing investment in R&D [8] Future Outlook - The report adjusts profit forecasts for 2024-2026, expecting net profits of 5.245 billion, 6.885 billion, and 9.662 billion yuan respectively [9] - Factors supporting a positive outlook include a dense cycle of new smart electric products, steady progress in overseas capacity construction, and significant cost reduction [9]