SAIC MOTOR(600104) 东方证券·2025-02-23 05:29Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.40 CNY, based on a 20x PE valuation for the years 2024-2026 [3][6]. Core Views - The company has signed a deep cooperation agreement with Huawei, which is expected to help reverse the challenges faced by its self-owned brands. The collaboration will focus on exploring innovations in smart automotive technology and business models, enhancing product definition, manufacturing, supply chain management, and sales services [2][8]. - The company's sales have shown marginal improvement, with January 2025 total sales reaching 264,200 units, a year-on-year increase of 7.9%. This marks the first positive year-on-year growth since March 2024 [8]. - The company is undergoing significant reforms in its self-owned and joint venture brands, aiming for stabilization and upward momentum in 2025. The establishment of a "large passenger vehicle sector" is part of these reforms, which will enhance management efficiency and decision-making processes [8]. Financial Summary - The company's revenue for 2022 was 720,988 million CNY, with a projected decline to 611,672 million CNY in 2024, followed by a recovery to 721,878 million CNY by 2026 [5]. - Operating profit is expected to drop significantly to 2,577 million CNY in 2024, before rebounding to 20,402 million CNY in 2025 and 22,102 million CNY in 2026 [5]. - The net profit attributable to the parent company is forecasted to decrease to 1,771 million CNY in 2024, with a substantial recovery anticipated in the following years [5]. - The earnings per share (EPS) are projected to be 0.15 CNY in 2024, increasing to 1.07 CNY in 2025 and 1.16 CNY in 2026 [3][5].