Lifan(601777) Tianfeng Securities·2025-05-31 00:20Investment Rating - The report initiates coverage with a "Buy" rating for Qianli Technology, setting a target price of 11.06 CNY, representing a potential upside of 33.6% from the current price of 8.28 CNY [6][58]. Core Insights - Qianli Technology, formerly known as Lifan Technology, is undergoing a significant transformation towards AI and smart vehicle integration, particularly after the entry of founder Yin Qi from Megvii Technology [1][2]. - The company is leveraging partnerships with Geely and Cao Cao Mobility to enhance its smart driving capabilities and develop a comprehensive ecosystem for autonomous vehicles [3][36]. - Financial projections indicate substantial growth in net profit, with expected figures of 0.81 billion CNY, 1.33 billion CNY, and 2.36 billion CNY for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 101.2%, 64.6%, and 78.4% [3][58]. Summary by Sections 1. Management Changes and Strategic Transformation - Qianli Technology has evolved from Lifan Technology, which was established in 1992, initially focusing on motorcycle engines and later expanding into passenger vehicles [1][13]. - The company underwent two major restructurings, with Geely and the Chongqing Liangjiang Fund becoming significant stakeholders post-bankruptcy in 2020, facilitating a shift towards AI-driven automotive solutions [1][16]. - In 2024, the company rebranded to Qianli Technology, emphasizing its commitment to smart vehicle technology and international expansion [1][19]. 2. AI and Smart Driving Strategy - The partnership with Geely has led to the development of the "Qianli Haohan" smart driving system, which aims to provide a full-stack technology ecosystem for autonomous driving [2][28]. - Qianli Technology is collaborating with Cao Cao Mobility to launch Robotaxi services, marking a significant step in the commercialization of autonomous driving in China [3][36]. - The company is focusing on enhancing its AI capabilities, particularly in large model applications, to improve smart cockpit solutions and user interaction [48][51]. 3. Financial Forecast and Valuation Analysis - Revenue projections for Qianli Technology indicate a growth trajectory, with expected revenues of 8.33 billion CNY, 10.02 billion CNY, and 12.44 billion CNY for 2025, 2026, and 2027 respectively, reflecting growth rates of 18.4%, 20.3%, and 24.1% [53][54]. - The gross margin is anticipated to improve, reaching 9.99%, 10.66%, and 11.08% over the same period, driven by economies of scale [54]. - The valuation analysis suggests a price-to-sales ratio of 6x for 2025, aligning with comparable companies in the smart driving and Robotaxi sectors [56][58].