KAIYUAN SECURITIES·2025-09-01 02:26Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][11] Core Views - The company is experiencing pressure on new car profits, but stable contributions from after-sales services are expected to support profitability [4][5][6] - The company has undergone significant network optimization, closing 37 authorized dealerships while opening 57 new ones and 20 service centers to enhance operational efficiency [4][5] - The forecast for net profit has been revised downwards for 2025-2027 due to ongoing challenges in the luxury car sales market, with expected net profits of 27.17 billion, 36.49 billion, and 49.83 billion respectively [4][7] Financial Performance Summary - For H1 2025, the company reported revenue of 77.3 billion, a year-on-year decrease of 6.2%, and a net profit of 10.11 billion, down 36.0% year-on-year [4][5] - The company sold 228,600 new cars in H1 2025, a decrease of 1.7% year-on-year, with a negative gross margin of 4.1% on new car sales [5][6] - After-sales service revenue increased by 4.4% year-on-year to 11.45 billion, with a gross profit of 5.44 billion, reflecting a stable growth trend [6][7] Valuation Metrics - The projected earnings per share (EPS) for 2025-2027 are 1.14, 1.53, and 2.09 respectively, with corresponding price-to-earnings (P/E) ratios of 12.9, 9.6, and 7.0 [4][7] - The company's revenue is expected to stabilize and grow, with projections of 165.3 billion in 2025, 171.7 billion in 2026, and 200 billion in 2027 [7]