SAIC MOTOR(600104) Changjiang Securities·2025-05-11 09:14Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 627.59 billion yuan for 2024, a year-on-year decrease of 15.7%, and a net profit attributable to shareholders of 1.67 billion yuan, down 88.2% year-on-year. For Q1 2025, the revenue was 140.86 billion yuan, a slight decrease of 1.5% year-on-year, while the net profit attributable to shareholders was 3.02 billion yuan, an increase of 11.4% year-on-year [2][4]. - Internal reforms are ongoing, with a partnership with Huawei accelerating the company's smart transformation. The company's performance is stabilizing, which is expected to drive valuation recovery. The company has initiated comprehensive reforms, focusing on the integration of the passenger vehicle segment and the rejuvenation of its workforce, which is anticipated to enhance internal efficiency and growth [2][10]. - The company experienced a significant drop in sales in Q4 2024, with a total of 1.364 million vehicles sold, a year-on-year decrease of 17.0%. However, Q1 2025 saw a recovery with sales of 945,000 vehicles, a year-on-year increase of 13.3%. The sales of new energy vehicles in Q1 2025 reached 273,000 units, up 29.9% year-on-year [10]. Summary by Sections Financial Performance - In 2024, the total revenue was 627.59 billion yuan, with a net profit of 1.67 billion yuan. For Q1 2025, the revenue was 140.86 billion yuan, and the net profit was 3.02 billion yuan [2][4]. - The company’s Q4 2024 revenue was 194.43 billion yuan, a year-on-year decrease of 10.9%, while the Q1 2025 revenue was 137.68 billion yuan, a slight decrease of 0.9% year-on-year [10]. Strategic Initiatives - The company is deepening its collaboration with Huawei to enhance its smart electric vehicle transformation. The integration of the passenger vehicle segment and the rejuvenation of the workforce are key components of the ongoing reforms [2][10]. - The company expects to see a gradual increase in sales of its self-owned brands, contributing to a stabilization in performance and potential valuation recovery [10]. Future Projections - The projected net profits for 2025 and 2026 are 11.13 billion yuan and 13.35 billion yuan, respectively, with corresponding price-to-earnings ratios of 16.2X and 13.5X [10].