SINOLINK SECURITIES·2024-10-31 02:05Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [6][10]. Core Insights - The company's Q3 2024 performance met expectations, with a significant recovery in gross margin driven by the launch of high-margin DM-i models and cost reductions due to economies of scale [5][6]. - The company is expected to maintain strong performance in Q4 2024, with robust sales and continuous improvement in gross margins [5][6]. - The company is solidifying its position in the low-end market while exploring overseas opportunities, which are anticipated to contribute positively to profitability [5][6]. Summary by Sections Financial Performance - In Q3 2024, the company sold 1.133 million vehicles, achieving a revenue of 201.13 billion yuan, representing year-on-year growth of 37.8% and quarter-on-quarter growth of 15.3% [3][4]. - The gross margin for Q3 2024 was 21.9%, with a net profit attributable to shareholders of 11.61 billion yuan, reflecting a year-on-year increase of 11.5% [4][6]. Cost and Expenses - The sales, management, and R&D expenses for Q3 were 9.6 billion, 4.71 billion, and 13.7 billion yuan respectively, with slight increases in expense ratios [3][4]. Future Outlook - The company anticipates maintaining strong sales momentum, with orders exceeding 460,000 in October alone, and expects Q4 sales to surpass 1.3 million vehicles [5][6]. - The gross margin is projected to continue improving as the proportion of high-margin DM-i 5.0 models increases [5][6]. Profitability Forecast - The report revises the company's net profit forecasts for 2024-2026 to 39.04 billion, 52.64 billion, and 64.8 billion yuan respectively, with corresponding P/E ratios of 22.77, 16.89, and 13.72 [6][8].