BOCOM International·2026-03-15 00:45Investment Rating - The investment rating for the company is Neutral [4][10]. Core Insights - The report indicates a cautious outlook for the first quarter of 2026, with expected deliveries of 85,000 to 90,000 vehicles and revenue between 20.4 billion to 21.6 billion RMB, reflecting a year-on-year decline due to product transitions and intensified industry competition [7][11]. - The company has shown signs of recovery in the fourth quarter of 2025, with a net profit of 0.2 billion RMB and a Non-GAAP net profit of 2.74 billion RMB, although operational profitability remains negative [7][11]. - The management plans to launch a new version of the L9 in the second quarter of 2026, which will feature advanced technology, and a flagship electric SUV, the i9, in the second half of the year [7][11]. Financial Overview - Revenue projections for the company are as follows: 144.46 billion RMB in 2024, 112.31 billion RMB in 2025, and an estimated 134.67 billion RMB in 2026, with a year-on-year growth of 19.9% expected in 2026 [3][11]. - The net profit is projected to recover from 1.12 billion RMB in 2025 to 2.36 billion RMB in 2026, with a significant increase of 109.5% year-on-year [3][11]. - The company’s gross margin is expected to decline to 17.3% in 2026 due to competitive pressures and rising costs, down from a previous estimate of 18.9% [7][11]. Market Performance - The current share price is 70.15 HKD, with a target price adjusted down to 75.36 HKD, indicating a potential upside of 7.4% [10][11]. - The company has a market capitalization of approximately 238.88 billion HKD and a 52-week trading range between 61.85 HKD and 124.50 HKD [6][10].