SAIC MOTOR(SH:600104) HTSC·2025-04-08 11:25Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 25.50 RMB [8][9]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 3 to 3.2 billion RMB in Q1 2025, representing a year-on-year increase of 10% to 18% [1]. - The company has shown a steady recovery in sales, with wholesale sales reaching 945,000 units in Q1 2025, up 13.3% year-on-year, indicating the initial effects of ongoing reforms [2][5]. - The internal restructuring focuses on the "large passenger vehicle" segment and includes a strategic partnership with Huawei to enhance product development and marketing capabilities [3][4]. Summary by Sections Financial Performance - The company reported a wholesale volume of 945,000 units in Q1 2025, with a year-on-year increase of 13.27%. The terminal deliveries exceeded 1.08 million units, and inventory levels have further decreased [2]. - The net profit forecast for 2024-2026 is maintained at 1.685 billion, 11.376 billion, and 14.141 billion RMB respectively, with a significant recovery expected in 2025 [5][7]. Strategic Developments - The company has undergone management changes and initiated multiple reform measures since July 2024, focusing on resource allocation and efficiency improvements [4]. - A strategic cooperation agreement with Huawei was signed to develop new energy smart vehicles, expected to launch in 2025 [3]. Market Positioning - The company is positioned to benefit from ongoing reforms and partnerships, which are anticipated to enhance its competitive edge in the domestic and international markets [4][5].