SERES(SH:601127) Ping An Securities·2025-10-31 09:39Investment 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 [10]. Core Views - The company has demonstrated a strong performance in the high-end SUV market, with its models, the AITO M8 and M9, achieving significant sales milestones, contributing to approximately 80% of the total deliveries of the Hongmeng Intelligent Driving platform [7]. - The company reported a revenue of 110.53 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 3.7%, and a net profit of 5.31 billion yuan, which is a 31.6% increase year-on-year [4]. - The gross margin for the third quarter of 2025 reached 29.9%, an increase of 4.4 percentage points year-on-year, supported by the sales of new models and the establishment of a dedicated sales service system [7]. - The company is expected to continue investing in its sales service system, which is anticipated to enhance its market position and profitability [8]. Financial Summary - The company’s projected revenues for 2025 to 2027 are 175.06 billion yuan, 226.60 billion yuan, and 254.06 billion yuan, respectively, with year-on-year growth rates of 20.6%, 29.4%, and 12.1% [6]. - The net profit forecast for the same period is adjusted to 8.85 billion yuan, 12.31 billion yuan, and 15.24 billion yuan, reflecting growth rates of 48.9%, 39.0%, and 23.9% respectively [8]. - The company’s gross margin is expected to stabilize around 28.2% to 29.5% from 2025 to 2027, indicating a solid profitability outlook [6][8]. - The report highlights the company's strategic partnerships, including a 10% stake in the company Yiwang and a collaboration with Huoshan Engine, which are expected to enhance its growth potential in the smart electric vehicle sector [7][8].