CSC SECURITIES (HK) LTD·2025-03-25 09:26Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [3][11]. 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 [5][10]. - The company has maintained strong sales growth, with a total of 623,000 vehicles sold in January and February 2024, marking a year-over-year increase of 92.5% [8]. - The company plans to enhance its market presence in the mid-to-low price range by upgrading its intelligent driving capabilities and introducing competitive products in the RMB 200,000 to 300,000 price segment [6][8]. Financial Performance - The company reported a gross margin of 19.4% for 2024, an increase of 0.9 percentage points year-over-year, with the automotive segment achieving a gross margin of 22.3% [5][6]. - The earnings per share (EPS) for 2024 is projected to be RMB 13.8, with future EPS estimates of RMB 17.8, RMB 22.4, and RMB 27.1 for 2025, 2026, and 2027 respectively [6][10]. - The company’s net profit is forecasted to grow to RMB 51.63 billion in 2025, RMB 65.27 billion in 2026, and RMB 78.79 billion in 2027, with year-over-year growth rates of 28%, 26%, and 21% respectively [6][10]. Market Position - The company has achieved a market share of 17.8% in the passenger car segment as of February 2024, an increase of 3.7 percentage points from January [8]. - The company is expected to double its export volume in 2025, with 133,000 vehicles exported in the first two months of 2024, a year-over-year increase of 124% [8].