GWMOTOR(SH:601633) Guotou Securities·2025-03-31 02:33Investment Rating - The investment rating for the company is "Buy-A" with a target price of 39.80 CNY per share, maintaining the rating [5]. Core Views - The company's Q4 2024 performance met expectations, with revenue of 599.4 billion CNY, a year-on-year increase of 12%, and a quarter-on-quarter increase of 18%. The net profit attributable to shareholders was 22.6 billion CNY, also up 12% year-on-year but down 32% quarter-on-quarter [1]. - The overall sales volume in Q4 was 380,000 units, reflecting a 30% increase quarter-on-quarter and a 4% increase year-on-year, primarily driven by government subsidy policies [2]. - The company is entering a new growth phase, with new vehicle launches expected to drive sales upward, particularly in the mainstream market [4]. Summary by Sections Financial Performance - For the full year 2024, the company achieved revenue of 2,022 billion CNY, a 17% increase year-on-year, and a net profit of 127 billion CNY, an 81% increase year-on-year [1]. - The average selling price (ASP) for vehicles in Q4 was 157,000 CNY, up 11,000 CNY year-on-year, attributed to a higher proportion of premium models [2]. - The overall gross margin for Q4 was 19.1%, a year-on-year increase of 0.6 percentage points, while the domestic gross margin for 2024 is expected to be 19.9%, up 4.4 percentage points year-on-year [3]. Market Outlook - The company is expected to benefit from the launch of new models, including the second-generation Xiaolong MAX and new models from Haval and Wey, which are anticipated to drive domestic sales growth [4]. - The Hi4Z technology is expected to enhance the company's competitive edge in the off-road vehicle market, potentially expanding its customer base and increasing profitability [4]. - The company has a diverse product lineup and strong technological reserves, indicating significant export potential as new models and powertrain types are introduced [4].