SAIC MOTOR(600104) 光大证券·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company's 2023 revenue increased by 0.7% year-on-year to CNY 726.2 billion, while net profit attributable to shareholders decreased by 12.5% to CNY 14.1 billion. The adjusted net profit increased by 11.7% to CNY 10.0 billion, with a gross margin of 10.2%, up 0.6 percentage points year-on-year [2] - The decline in Q4 2023 performance was primarily due to increased credit impairment for SAIC Hongyan and SAIC General Financial, as well as provisions for unsold vehicle inventory [2] - The report highlights a mixed performance among joint ventures, with investment income from joint ventures and associates decreasing by 1.1% year-on-year to CNY 10.7 billion in 2023, while Q4 2023 saw a turnaround with investment income increasing to CNY 3.4 billion [2] - The company is focusing on electric vehicle transformation and expanding its overseas market presence, with significant growth in exports and new model launches expected in 2024 [2] Summary by Sections Financial Performance - 2023 revenue was CNY 726.2 billion, with a year-on-year growth rate of 0.72% - Net profit for 2023 was CNY 14.1 billion, down 12.48% from the previous year - Q4 2023 revenue reached CNY 218.2 billion, a 3.5% increase year-on-year, while net profit was CNY 2.7 billion, down 22.2% year-on-year [2][3] Joint Ventures and Market Performance - Q4 2023 saw SAIC Volkswagen sales increase by 6.7% year-on-year to 383,000 units, while SAIC General's sales decreased by 12.5% to 277,000 units [2] - The company plans to launch new models in 2024, including the new Passat and ID.7 electric vehicle [2] Future Projections - The report projects 2024 net profit to be CNY 14.9 billion, with a slight decrease in 2025 to CNY 16.2 billion, and a new estimate for 2026 at CNY 16.7 billion [2][3] - The company is expected to benefit from its brand and resource advantages, leading to a potential valuation recovery in the medium to long term [2]