SAIC MOTOR(600104) Huachuang Securities·2025-05-13 11:43Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 20.8 yuan, indicating an expected upside of 27% [1][6]. Core Views - The company's performance in Q1 2025 shows significant improvement, with a notable recovery in its fundamentals. The revenue for Q1 2025 was 1,409 million yuan, a year-on-year decrease of 1.6%, but the net profit attributable to shareholders was 30.2 million yuan, an increase of 3.1 million yuan year-on-year [6][7]. - The company has undergone a comprehensive reform in its passenger vehicle segment, aiming to enhance operational efficiency and reduce costs. The "Large Passenger Vehicle Segment" was established to integrate various subsidiaries and improve resource allocation [6][7]. - A partnership with Huawei has been initiated to develop the "Shangjie" brand, which is expected to capture a significant market share in the economy car segment, with optimistic sales projections [6][7]. Financial Summary - Total revenue is projected to increase from 627,590 million yuan in 2024 to 780,228 million yuan by 2027, reflecting a compound annual growth rate (CAGR) of approximately 8.2% [2][7]. - The net profit attributable to shareholders is expected to rise from 1,666 million yuan in 2024 to 16,875 million yuan in 2027, with a significant growth rate of 622.8% in 2025 [2][7]. - The earnings per share (EPS) is forecasted to grow from 0.14 yuan in 2024 to 1.46 yuan in 2027, indicating a strong recovery in profitability [2][7]. Market Position and Strategy - The company plans to launch 10 new and significantly updated models in 2025, including 8 new energy vehicles, to strengthen its market position [6][7]. - The collaboration with Volkswagen has been extended until 2040, with plans to introduce new electric and hybrid models tailored for the Chinese market starting in 2026 [6][7]. - The current valuation metrics indicate a low price-to-earnings (P/E) ratio of 15.8 for 2025, suggesting that the company is undervalued relative to its growth potential [6][7].