EBSCN·2024-11-04 00:47Investment Rating - The report maintains an "Add" rating for the company [3]. Core Views - The company reported a total revenue of 42.87 billion yuan in Q3 2024, representing a year-on-year increase of 23.6% and a quarter-on-quarter increase of 35.3%. The gross margin improved quarter-on-quarter to 21.5% [1][2]. - The company is focusing on breakthroughs in the pure electric vehicle market for 2025, with expectations of increased sales from the L series range-extended models due to market expansion and channel upgrades [2][3]. Summary by Sections Q3 2024 Performance - Total revenue reached 42.87 billion yuan, with a year-on-year growth of 23.6% and a quarter-on-quarter growth of 35.3%. The gross margin was 21.5%, showing a slight year-on-year decline of 0.5 percentage points but an improvement of 2.0 percentage points from the previous quarter [1]. - Non-GAAP net profit was 3.85 billion yuan, reflecting a year-on-year increase of 10.6% and a quarter-on-quarter increase of 155.5% [1]. Automotive Revenue and Profitability - Automotive revenue was 41.32 billion yuan, with a year-on-year increase of 22.9% and a quarter-on-quarter increase of 36.3%. The average selling price (ASP) decreased by 15.5% year-on-year to 270,000 yuan [2]. - The automotive business gross margin was 20.9%, with a quarter-on-quarter increase attributed to economies of scale and cost reductions [2]. Research and Development Expenses - R&D expense ratio decreased to 6.0%, down 2.1 percentage points year-on-year and 3.5 percentage points quarter-on-quarter [2]. Cash Flow and Guidance - Free cash flow turned positive at approximately 9.1 billion yuan, with total cash on hand reaching about 106.5 billion yuan by the end of Q3 2024 [2]. - Management guidance for Q4 2024 indicates expected deliveries of 160,000 to 170,000 vehicles, with a total annual delivery forecast of 502,000 to 512,000 vehicles [2]. Strategic Developments - The company is advancing its smart driving version upgrades and expanding its charging network, with plans to increase the proportion of automotive city sales centers from 24% at the end of 2023 to over 40% by the end of 2024 [2]. - As of October 31, 2024, the company has established 1,000 supercharging stations, with a target of 2,000 by the end of 2024 [2]. Profit Forecast Adjustments - The report raises the 2024E Non-GAAP net profit forecast to 11.1 billion yuan, while lowering the 2025E and 2026E forecasts to 15.4 billion yuan and 26.4 billion yuan, respectively [3].