2024-02-28 16:00Investment Rating - The investment rating for the company is "Buy" [6][9]. Core Views - The company achieved a significant revenue growth of 173.5% year-on-year in 2023, with total sales revenue reaching 123.85 billion RMB, and automotive sales revenue accounting for approximately 97.1% of total revenue [1][4]. - The company is expected to continue its high growth trajectory in 2024, aiming for annual sales of 800,000 vehicles, driven by the launch of new electric vehicle models [3][4]. - The company reported a net profit of 11.7 billion RMB in 2023, marking a turnaround from previous losses, primarily due to substantial interest income, investment gains, and government subsidies [1][4]. Summary by Sections Financial Performance - In 2023, the company recorded a gross profit of 27.5 billion RMB, with a gross margin of 22.2%, an increase of 2.8 percentage points from the previous year [1][4]. - The company’s vehicle sales volume reached 376,000 units in 2023, representing a year-on-year increase of 182.2% [1][4]. - Research and development expenses increased by 56.1% to 10.59 billion RMB, while selling, general, and administrative expenses rose by 72.4% to 9.77 billion RMB, indicating that expense growth was significantly lower than revenue growth [1][4]. Future Outlook - The company plans to launch several new electric vehicle models in 2024, including the flagship model MEGA and the L6 SUV, which is expected to contribute significantly to sales [3][4]. - The forecast for total revenue in 2024 is projected to exceed 200 billion RMB, with a net profit expected to reach around 16 billion RMB, reflecting a high growth rate compared to 2023 [4][9]. Valuation - As of February 27, 2024, the company's stock price was 175.5 HKD, corresponding to a projected PE ratio of approximately 21.5 times for 2024 [5][6].