JAC(600418) 海通国际·2024-11-10 07:27Investment Rating - The report assigns an "Outperform" rating to Jianghuai Automobile (JAC) with a target price of RMB 49.44, representing a 60% increase from the previous target price of RMB 30.90 [2][11] Core Views - Jianghuai Automobile demonstrated strong performance in the first three quarters of 2024, with net profit attributable to shareholders reaching RMB 630 million, a 2.4-fold year-over-year increase [1][8] - The company's Q3 2024 revenue was RMB 10.93 billion, down 5.5% YoY, but gross profit margin improved by 0.41 percentage points to 11.36% [1][9] - Jianghuai Automobile has expanded its open cooperation strategy, signing strategic agreements with Huawei Digital Energy and CATL to enhance its competitiveness in the new energy vehicle sector [2][10] Financial Performance - For 2024-2026, the report forecasts net profits of RMB 220 million, RMB 290 million, and RMB 410 million, respectively, with book value per share (BPS) of RMB 6.18, RMB 6.36, and RMB 6.60 [2][11] - The company's revenue is expected to grow from RMB 50.24 billion in 2024E to RMB 60.22 billion in 2026E, with a compound annual growth rate (CAGR) of approximately 9.5% [4][6] - Gross profit margin is projected to increase steadily from 11.7% in 2024E to 12.5% in 2026E, reflecting improved operational efficiency [4][6] Strategic Developments - Jianghuai Automobile has optimized its product and debt structures, expanded into domestic and international markets, and increased asset disposal income, contributing to its financial improvement [1][8] - The company's collaboration with Huawei Digital Energy focuses on the integration of vehicles, charging infrastructure, and digital platforms, while its partnership with CATL aims to incorporate advanced battery technology into multiple product lines [2][10] Valuation and Projections - The report values Jianghuai Automobile at 8.0x price-to-book (PB) ratio for 2024, up from the previous 5.0x PB, reflecting the company's growth potential [2][11] - Earnings per share (EPS) is expected to grow from RMB 0.10 in 2024E to RMB 0.19 in 2026E, driven by improved profitability and operational efficiency [4][6]