SAIC MOTOR(SH:600104) Shanghai Aijian Securities·2025-12-15 09:33Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [6]. Core Insights - The company is undergoing a significant transformation towards electric and intelligent vehicles, supported by a strategic partnership with Huawei, which is expected to enhance its product offerings and user experience [6]. - The company has a complete automotive industry chain and a diverse brand matrix, which positions it well in the competitive landscape of the automotive industry [6]. - Financial forecasts indicate a strong rebound in net profit from 2025 onwards, with expected profits of 10.75 billion, 13.34 billion, and 16.15 billion yuan for 2025, 2026, and 2027 respectively [6]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 744.71 billion yuan - 2024: 627.59 billion yuan (down 15.7% YoY) - 2025E: 668.57 billion yuan (up 6.5% YoY) - 2026E: 697.79 billion yuan (up 4.4% YoY) - 2027E: 746.77 billion yuan (up 7.0% YoY) [5][17] - Net profit forecasts are: - 2023: 14.11 billion yuan - 2024: 1.67 billion yuan (down 88.2% YoY) - 2025E: 10.75 billion yuan (up 545.2% YoY) - 2026E: 13.34 billion yuan (up 24.1% YoY) - 2027E: 16.15 billion yuan (up 21.1% YoY) [5][17] - The company's gross margin is expected to improve from 1.7% in 2023 to 11.1% by 2027 [5][17]. Market Position and Competitive Landscape - The company ranks second in cumulative automobile sales in China for the first ten months of 2025, with a market share of 12.8% [7]. - The automotive industry is experiencing intensified competition, particularly as domestic brands rise and joint ventures face pressure [6]. Strategic Initiatives - The company is restructuring its passenger vehicle segment to enhance operational efficiency and resource synergy [6]. - The collaboration with Huawei aims to penetrate the mainstream intelligent electric vehicle market, leveraging Huawei's technological expertise [6].