SAIC MOTOR(SH:600104) Changjiang Securities·2025-09-07 14:11Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a total revenue of 299.59 billion yuan for H1 2025, representing a year-on-year increase of 5.2%. The net profit attributable to the parent company, excluding non-recurring items, was 5.43 billion yuan, showing a significant year-on-year increase of 432.2% [2][4]. - In Q2 2025, the company achieved a total revenue of 158.73 billion yuan, which is up 12.1% year-on-year and 12.7% quarter-on-quarter. The net profit for this quarter was 2.58 billion yuan, marking a return to profitability [2][4]. - The company is undergoing comprehensive reforms, including the integration of its passenger vehicle segment and the promotion of younger leadership, which is expected to enhance internal efficiency and growth [2][9]. - The partnership with Huawei is deepening, particularly with the "Shangjie" model adopting an intelligent selection approach, which is anticipated to accelerate the company's transition to smart electric vehicles [2][9]. Summary by Sections Financial Performance - In H1 2025, the company sold 2.053 million vehicles, a year-on-year increase of 12.4%. In Q2 2025, sales reached 1.108 million vehicles, up 11.6% year-on-year and 17.3% quarter-on-quarter [9]. - The sales of new energy vehicles in H1 2025 were 646,000 units, reflecting a year-on-year increase of 40.2%, with Q2 sales at 373,000 units, up 48.8% year-on-year [9]. - The company’s total revenue for H1 2025 was 299.59 billion yuan, with a significant increase in net profit, indicating a recovery in sales and profitability [4][9]. Strategic Developments - The company is implementing a comprehensive reform strategy aimed at improving operational efficiency and driving growth through the integration of its passenger vehicle segment [2][9]. - The collaboration with Huawei is expected to enhance the company's capabilities in smart electric vehicle development, positioning it favorably in the evolving automotive landscape [2][9]. Future Outlook - The company forecasts net profits of 13.02 billion yuan and 14.98 billion yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 16.5X and 14.4X, supporting the "Buy" rating [9].