SERES(SH:601127) Ping An Securities·2025-09-08 09:19Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation that the stock will outperform the market by 10% to 20% over the next six months [13]. Core Insights - The new AITO M7 has initiated pre-sales with a starting price of 288,000 yuan, featuring comprehensive upgrades in appearance, chassis, body dimensions, wheelbase, and intelligent driving capabilities [4][7]. - The pricing strategy for the new M7 reflects a brand value enhancement, as it is positioned at a higher price point compared to its predecessor, indicating a shift towards high-end market positioning [7][10]. - The report highlights the formation of a high-end brand strategy for AITO, supported by a close partnership with Huawei, which has established a brand barrier in the premium vehicle segment [10]. Financial Projections - Revenue projections for the company show significant growth, with expected revenues of 145.176 billion yuan in 2024, increasing to 258.398 billion yuan by 2027, reflecting a year-over-year growth rate of 305.0% in 2024 [6]. - Net profit is projected to turn positive in 2024, reaching 5.946 billion yuan, and is expected to grow to 16.793 billion yuan by 2027, with a year-over-year growth of 342.7% in 2024 [6]. - The gross margin is anticipated to improve from 10.4% in 2023 to 26.2% in 2024, while the net margin is expected to shift from -6.8% to 4.1% in the same period [6]. Product Development - The new AITO M7 features a wheelbase of 3030 mm, which is an increase of 210 mm from the previous model, providing more interior space [7][9]. - The M7 is equipped with Huawei's advanced driving assistance system (ADS 4), enhancing its competitive edge in the market [11]. Market Positioning - AITO's M9 and M8 models have maintained high price points, with the M9 priced around 500,000 yuan, demonstrating the brand's ability to achieve high sales volumes despite premium pricing [7][10]. - The report notes that AITO's pricing strategy allows it to achieve a unique market position, with its models priced higher than competitors while still achieving strong sales [10].