SERES(SH:601127) Great Wall Securities·2024-03-06 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [15]. Core Views - The AITO Wenjie series continues to see significant production and sales growth, with the M9 model achieving over 50,000 pre-orders, indicating strong market demand [2][4]. - The company's total production of new energy vehicles reached 32,273 units in February 2024, a year-on-year increase of 257.64%, while total sales reached 30,257 units, up 360.04% year-on-year [3][4]. - The AITO Wenjie series has become the primary driver of the company's new energy vehicle sales, with its share of total sales rising from 52% in February 2023 to 95% in February 2024 [4]. Financial Summary - Revenue is projected to grow from 34,105 million yuan in 2022 to 79,721 million yuan in 2024, reflecting a growth rate of 120.2% [3]. - The company is expected to report a net profit of -2,410 million yuan in 2023, improving to -904 million yuan in 2024, and turning positive with a profit of 308 million yuan in 2025 [3][4]. - The return on equity (ROE) is forecasted to improve from -49.2% in 2023 to 7.4% in 2025 [3]. Market Position - The AITO Wenjie series ranked first in new force vehicle sales in February 2024, surpassing competitors like Li Auto [7]. - The company has established a strong market presence, ranking fourth among all new energy brands in China and fifth among luxury brands, just behind traditional luxury car manufacturers [7]. - The report highlights the company's resilience in sales despite external pressures, with a relatively small decline in sales compared to other top ten new energy vehicle manufacturers [7].