Soochow Securities·2024-03-12 16:00Investment Rating - The report maintains a "Buy" rating for GAC Group [2][4] Core Views - GAC Group's wholesale volume decreased by 25.41% month-on-month in February 2024, with significant declines in production and sales across various brands [3][4] - The company is focusing on closing the loop in its self-owned energy ecosystem and accelerating the electric transformation of its joint venture brands [4] - The forecast for GAC Group's net profit attributable to shareholders for 2023-2025 is set at 65.2 billion, 71.7 billion, and 86.4 billion RMB, corresponding to P/E ratios of 14, 13, and 11 times respectively [4] Financial Performance Summary - Total revenue for GAC Group is projected to grow from 110,006 million RMB in 2022 to 163,011 million RMB in 2025, with a compound annual growth rate (CAGR) of 5.60% [8] - The net profit attributable to shareholders is expected to decline from 8,068 million RMB in 2022 to 6,522 million RMB in 2023, before recovering to 8,641 million RMB in 2025 [8] - The latest diluted EPS is forecasted to be 0.62 RMB in 2023, increasing to 0.82 RMB by 2025 [8] Market Data - GAC Group's market capitalization is approximately 93,543.19 million RMB, with a P/B ratio of 0.81 [6] - The closing price of the stock is 8.92 RMB, with a 52-week range of 7.72 to 11.85 RMB [6]