SERES(SH:601127) Dongguan Securities·2025-10-31 09:41Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company has successfully transformed from a component supplier to a leading high-end new energy vehicle manufacturer, with significant growth driven by its partnership with Huawei and the launch of the AITO brand [6][14] - The company is expected to achieve a revenue of 145.18 billion yuan and a net profit of 5.95 billion yuan in 2024, with a strong performance in the first half of 2025, where net profit increased by 81% year-on-year [6][25] - The AITO brand, particularly the M8 and M9 models, has become the main driver of sales and profit, contributing over 70% to the brand's sales structure [6][19] Summary by Sections Company Transformation - The company started in 1986 as a manufacturer of automotive seat springs and has evolved into a high-end new energy vehicle manufacturer, completing its transformation by 2019 through strategic partnerships and technological advancements [13][14] - The collaboration with Huawei initiated in 2019 has been pivotal, leading to the launch of the AITO brand and the introduction of models like the M5, M7, and M9, which have significantly enhanced the company's market presence [14][15] Market Position and Growth - The company has a strong market position with its AITO brand, which accounted for 81.08% of its new energy vehicle sales in the first three quarters of 2025 [6][21] - The company plans to list on the Hong Kong Stock Exchange, aiming to raise approximately 12.92 billion HKD to enhance R&D and expand its overseas market presence [6][19] Financial Performance - The company is projected to achieve net profits of 9.80 billion, 13.12 billion, and 16.81 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 27.15, 20.28, and 15.83 [6][25] - The gross margin has improved significantly, reaching 28.9% in the first half of 2025, driven by the successful launch of high-end models and cost reductions from scale production [26]