SERES(SH:601127) Huachuang Securities·2025-11-06 15:27Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [6][17]. Core Insights - The company reported Q3 2025 results that met expectations, with revenue of 48.1 billion yuan, a year-on-year increase of 16% and a quarter-on-quarter increase of 11%. The net profit attributable to shareholders was 2.37 billion yuan, down 1.7% year-on-year but up 8.1% quarter-on-quarter. The company successfully listed on the Hong Kong Stock Exchange, raising approximately 14.2 billion HKD [2][6]. - The company is leveraging its "A+H" dual capital platform strategy to enhance brand recognition in international markets and accelerate global expansion [2][6]. - The new model, Wanjie M8, has shown strong sales performance, contributing to the overall sales growth of 142,000 vehicles in Q3 2025, a year-on-year increase of 6.3% and a quarter-on-quarter increase of 9.1% [6][7]. Financial Performance Summary - Q3 2025 sales volume reached 142,000 units, with Wanjie sales at 124,000 units, reflecting a year-on-year increase of 12% and a quarter-on-quarter increase of 16%. The average selling price (ASP) was 339,000 yuan, up 2,800 yuan year-on-year and 700 yuan quarter-on-quarter [6][7]. - The gross margin for Q3 2025 was 29.9%, an increase of 4.4 percentage points year-on-year and 0.4 percentage points quarter-on-quarter [6][7]. - The company plans to allocate the funds raised from the IPO as follows: 40% for technology R&D, 30% for product development, 20% for marketing and overseas sales, and 10% for working capital [6][7]. Future Outlook - The company expects steady growth in sales and profitability, driven by the successful launch of new models and the internationalization process accelerated by the Hong Kong IPO. Revenue forecasts for 2025-2027 have been adjusted to 168.8 billion, 237.1 billion, and 268.3 billion yuan, respectively, with net profit forecasts adjusted to 8.3 billion, 13.6 billion, and 15.5 billion yuan [6][7]. - The target price for the company's stock is set at 195.80 yuan, indicating a potential upside of 38% based on a 25x PE ratio for 2026 [6][7].