SERES(SH:601127) Tianfeng Securities·2025-04-24 07:45Investment Rating - The report gives an initial rating of "Buy" for the company [7] Core Viewpoints - The company achieved significant revenue growth in 2024, with total revenue reaching 145.18 billion yuan, a year-on-year increase of 305.04%, and a net profit of 5.95 billion yuan, marking four consecutive quarters of profitability [1][18] - The collaboration with Huawei has strengthened the company's core advantages in smart technology, enhancing both product and channel capabilities [2][32] - The high-end positioning of the AITO brand is expected to drive brand elevation and market penetration in the premium segment [3][50] Summary by Sections Brand Transformation and Performance Improvement - The company has undergone a transformation, focusing on smart technology and electric vehicles, leading to a significant turnaround in performance [15] - In 2024, the company sold 427,000 new energy vehicles, a year-on-year increase of 182.8%, with subsidiary sales reaching 389,000 units, up 265% [1][18] Deep Cooperation with Huawei - Huawei's support has enabled the company to enhance its product offerings and sales channels, leading to a more integrated user experience [2][43] - The Huawei ADS system has evolved to provide comprehensive smart driving capabilities, significantly improving the driving experience [33][39] High-End Positioning of AITO - The high-end market for passenger vehicles in China is expanding, with a notable increase in the penetration of new energy vehicles priced above 300,000 yuan [3][50] - The AITO brand has successfully entered the mid-to-high-end automotive market, with models like the M7 and M9 contributing to brand growth [3][55] New Growth Drivers - The upcoming launch of the M8 model in the 350,000 to 450,000 yuan price range is expected to enhance the product matrix and drive sales growth [4] - The establishment of an overseas electric vehicle company indicates a strategic move towards global market integration [4][46] Financial Forecast and Valuation Analysis - The company is projected to achieve net profits of 10.96 billion, 13.90 billion, and 16.86 billion yuan for the years 2025 to 2027, respectively [4][6] - The target market capitalization for 2025 is estimated at 273.92 billion yuan, with a target price of 167.70 yuan per share, reflecting a potential upside of 29.6% [4][6]