SERES(SH:601127) Huachuang Securities·2025-09-25 06:11Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 204.57 CNY, indicating a potential upside of 43% [2][9]. Core Insights - The launch of the upgraded Aito M7 on September 23 is expected to elevate the company's sales and pricing strategy, with the extended range version priced between 279,800 to 359,800 CNY and the pure electric version priced between 319,800 to 379,800 CNY [2][9]. - The upgraded M7 features significant enhancements in space, range, cabin technology, and driving assistance, which are anticipated to boost sales performance, with initial orders exceeding 30,000 units within the first hour of launch [9]. - The report forecasts steady monthly sales of around 20,000 units for the M7, leading to an improvement in gross margins by 2-3 percentage points due to increased average selling price (ASP) and scale effects [9]. Financial Projections - Total revenue is projected to grow from 145.176 billion CNY in 2024 to 289.895 billion CNY in 2027, with year-on-year growth rates of 305.0%, 27.4%, 35.4%, and 15.8% respectively [5][10]. - Net profit attributable to the parent company is expected to rise from 5.946 billion CNY in 2024 to 16.506 billion CNY in 2027, with growth rates of 342.7%, 60.5%, 40.1%, and 23.5% respectively [5][10]. - Earnings per share (EPS) are projected to increase from 3.64 CNY in 2024 to 10.11 CNY in 2027, reflecting a strong growth trajectory [5][10]. Market Positioning - The upgraded M7 is positioned to become a market leader in the mid-to-large SUV segment, further establishing the Aito brand as a premium SUV player [9]. - The report anticipates that the company's sales volume will reach 560,000, 820,000, and 950,000 units in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 14%, 46%, and 16% [9].