SERES(SH:601127) HUAXI Securities·2025-04-08 11:53Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a significant increase in revenue and achieved profitability in 2024, with total revenue reaching 145.18 billion yuan, a year-on-year growth of 305.04%, and a net profit attributable to shareholders of 5.95 billion yuan, marking a turnaround from losses [2][3] - The high-end strategy has shown remarkable results, with a notable increase in gross margin to 26.21%, up by 16.29 percentage points year-on-year, driven by strong sales of high-end models like the AITO M9 [4] - The company's advanced manufacturing capabilities, including a leading super factory and integrated die-casting technology, are expected to support new product launches, including the updated AITO M9 and the new AITO M8 [5] Summary by Sections Financial Performance - In 2024, the company achieved a record revenue of 145.18 billion yuan, with a net profit of 5.95 billion yuan, indicating a significant recovery from previous losses [2][3] - The fourth quarter of 2024 alone saw revenue of 38.55 billion yuan, a year-on-year increase of 101.18%, and a net profit of 1.91 billion yuan, reflecting a 1325.88% increase [3] Strategic Developments - The high-end vehicle sales reached 426,900 units in 2024, a year-on-year increase of 182.8%, with the AITO M9 being a standout product, selling over 150,000 units and leading the luxury car segment in China for 11 consecutive months [4] - The company invested 7.05 billion yuan in R&D in 2024, a 58.9% increase, with R&D personnel constituting one-third of the total workforce [4] Future Outlook - The company has adjusted its revenue forecasts for 2025 and 2026, projecting revenues of 185.68 billion yuan and 217.62 billion yuan respectively, while introducing a new forecast for 2027 at 242.58 billion yuan [6] - The earnings per share (EPS) estimates have been revised to 6.16 yuan for 2025, 7.74 yuan for 2026, and 9.36 yuan for 2027, with corresponding price-to-earnings (PE) ratios of 18.47, 14.70, and 12.16 [6]