SERES(601127)2025-05-30 10:20Investment Rating - The report gives a "Strong Buy" rating for the company with a target price of 184.93 CNY, indicating a potential upside of 37% from the closing price on May 29, 2025 [2][11]. Core Viewpoints - The collaboration with Huawei has entered a harvest period, significantly improving the company's profitability. The sales of the "Wenjie" brand have positioned the company among the top new force brands in the market, leading to a substantial turnaround in profitability [8][11]. - The company has established a competitive advantage through the "6+1" capability framework, which includes product definition, R&D, channel management, supply chain, manufacturing, marketing, and management capabilities, supported by Huawei's empowerment [11][12]. Financial Overview - The company is projected to achieve total revenue of 145.18 billion CNY in 2024, with a year-on-year growth rate of 305%. The net profit is expected to reach 5.946 billion CNY, reflecting a growth of 342.7% [3][11]. - Forecasts for 2025-2027 indicate continued growth, with revenues of 171.78 billion CNY, 187.10 billion CNY, and 209.04 billion CNY, respectively, and net profits of 10.069 billion CNY, 12.562 billion CNY, and 14.865 billion CNY [3][11]. Current Market Position - The "Wenjie" brand has achieved significant market share, with models like M9 and M7 ranking first and second in their respective segments. The M8 model is expected to achieve monthly sales of 18,000 to 20,000 units, potentially becoming a new sales champion in its segment [8][10][11]. - The company has transitioned from traditional fuel vehicles to new energy vehicles, with the "Wenjie" brand accounting for 78% of total sales in 2024 [25][26]. Competitive Advantages - The partnership with Huawei has enhanced the company's brand and technological capabilities, particularly in smart driving and intelligent cockpit systems, which are critical for high-end market positioning [10][12]. - The company's product matrix includes a range of high-end models, with the "Wenjie" brand focusing on the premium segment, leveraging Huawei's expertise in consumer electronics to meet user demands effectively [52][53].