Soochow Securities·2024-02-18 16:00Investment Rating - The report maintains a "Buy" rating for GAC Group [2][5] Core Views - GAC Group's January 2024 production was 157,492 units, showing a year-on-year increase of 22.72% but a month-on-month decrease of 34.01%. Sales were 131,876 units, reflecting a year-on-year decrease of 10.24% and a month-on-month decrease of 49.07% [4][5] - The report highlights that GAC's self-owned brand, GAC Trumpchi, performed better than the overall group, with a production increase of 77.21% year-on-year and sales growth of 45.20% year-on-year [4][5] - The report projects GAC Group's net profit for 2023-2025 to be 65.2 billion, 71.7 billion, and 86.4 billion CNY respectively, with corresponding P/E ratios of 14, 13, and 11 [5][7] Financial Forecasts - Total revenue for GAC Group is forecasted to reach 132.97 billion CNY in 2023, 154.36 billion CNY in 2024, and 163.01 billion CNY in 2025, with year-on-year growth rates of 20.87%, 16.09%, and 5.60% respectively [5][7] - The report indicates a projected diluted EPS of 0.62 CNY for 2023, 0.68 CNY for 2024, and 0.82 CNY for 2025 [5][7] - The report notes an increase in overall inventory for GAC Group in January, with a total increase of 25,616 units compared to December 2023 [5]