CSC SECURITIES (HK) LTD·2025-03-25 10:01Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [3][6]. Core Insights - The company is expected to achieve a revenue of RMB 777.1 billion in 2024, representing a year-over-year growth of 29%, with a net profit of RMB 40.25 billion, reflecting a 34% increase [6][7]. - The company has maintained strong sales growth, with a 92.5% year-over-year increase in vehicle sales during January and February, totaling 623,000 units [9]. - The company is focusing on enhancing its smart driving capabilities in the mid-to-low price range and plans to introduce more competitive products in the RMB 200,000 to 300,000 segment [7]. Financial Performance - The company reported a net profit of RMB 40.25 billion for 2024, with a basic earnings per share (EPS) of RMB 13.8 [6][12]. - The automotive business generated revenue of RMB 617.38 billion, up 27.7% year-over-year, with total vehicle sales reaching 4.27 million units, a 41% increase [7][12]. - The gross profit margin for the automotive segment improved to 22.3%, an increase of 1.29 percentage points year-over-year [7]. Sales and Market Position - In February, the company achieved a monthly sales figure of 323,000 vehicles, a 164% increase year-over-year, capturing a market share of 17.8% in the passenger vehicle segment [9]. - The company exported 133,000 vehicles in the first two months of the year, marking a 124% year-over-year growth, positioning it as the leading exporter among automotive manufacturers [9]. Future Projections - The company is projected to achieve net profits of RMB 51.63 billion, RMB 65.27 billion, and RMB 78.79 billion for the years 2025, 2026, and 2027, respectively, with year-over-year growth rates of 28%, 26%, and 21% [7][12]. - The expected EPS for the same years is RMB 17.8, RMB 22.4, and RMB 27.1, with corresponding price-to-earnings (P/E) ratios for A-shares of 20.8, 16.5, and 13.7 [7][12].