Soochow Securities·2025-10-27 10:14Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's overall performance in the first three quarters was below expectations due to intensified industry competition and ongoing cost reduction efforts. The net profit forecasts for 2025, 2026, and 2027 have been revised down to -4.2 billion, 0.8 billion, and 2.2 billion respectively, with corresponding P/E ratios for 2026 and 2027 at 94 and 35 times. Despite these challenges, the gradual bottoming out of joint ventures and accelerated group reforms, along with a planned vehicle collaboration with Huawei expected to launch in 2026, may provide a boost in sales [3] Financial Performance Summary - For Q3 2025, the company reported total revenue of 24.32 billion yuan, with a year-on-year decrease of 15% but a quarter-on-quarter increase of 7%. The net profit attributable to the parent company was -1.77 billion yuan, with a non-recurring net profit of -1.83 billion yuan. The wholesale sales for GAC Passenger Cars and GAC Aion were 81,000 and 75,000 units respectively, showing year-on-year declines of 8% and 26%, but quarter-on-quarter increases of 5% and 21% [9][10] - The Q3 gross margin was -2.9%, indicating ongoing challenges in profitability, while the investment income from joint ventures totaled 1.1 billion yuan, reflecting a year-on-year increase of 187% [9][10] - The company's cash flow from operating activities is projected to be -2.02 billion yuan in 2025, with total revenue expected to decline by 4.66% in 2025 before rebounding by 34.53% in 2026 [10]