Ping An Securities·2025-08-04 06:44Investment Rating - The report maintains a "Recommendation" rating for the company [1]. Core Views - Despite a 39.7% year-on-year decline in July sales, the company remains optimistic about its adaptability in the pure electric vehicle market [4][7]. - The launch of the new electric SUV i8 has faced challenges, with its configuration strategy being perceived as conservative compared to competitors [7][8]. - The company has a strong error correction capability, which is expected to support its future growth in the pure electric vehicle segment [8]. Financial Summary - Projected revenues for 2023A are 123.85 billion, with a year-on-year growth of 173.5%. However, a decline of 3.5% is expected in 2025E [6]. - Net profit is forecasted to be 11.704 billion in 2023A, with a significant increase of 681.7% year-on-year, but a decrease of 31.4% is anticipated in 2024A [6]. - The gross margin is expected to be 22.2% in 2023A, with a slight decline to 20.5% in 2024A [6]. - The company’s total assets are projected to reach 162.35 billion in 2024A, with total liabilities of 91.03 billion [10]. - The cash flow from operating activities is expected to be 15.933 billion in 2024A, indicating strong operational cash generation [12]. Market Position and Competitive Landscape - The company is facing increased competition in the mid-to-large hybrid SUV market, which may impact the sales of its L series vehicles [7]. - The i8's delivery strategy may affect customer commitment due to a lack of additional cash incentives for early adopters [8]. - The company has established a robust charging network with 3,000 supercharging stations across 31 provinces and 258 cities, positioning it favorably in the pure electric vehicle market [8].