CHANGAN AUTOMOBILE-B(SZ:000625) Soochow Securities·2024-05-02 05:00Investment Rating - The report maintains a "Buy" rating for Changan Automobile [1] Core Views - The company reported Q1 2024 revenue of 37.023 billion yuan, a year-on-year increase of 7.1%, but a decline of 14.1% quarter-on-quarter. The net profit attributable to shareholders was 1.158 billion yuan, down 83.4% year-on-year and 19.9% quarter-on-quarter, primarily due to increased discounts in response to intense market competition [3][4] - Changan's self-owned brand sales reached 589,000 units in Q1, with a year-on-year increase of 13.6% and a quarter-on-quarter increase of 7.3%. The average selling price of self-owned brands decreased to 64,100 yuan, reflecting a competitive pricing strategy [3][4] - The company is set to launch nearly 10 new models in 2024, focusing on both domestic and international markets, aiming for high growth in sales [4] Financial Performance Summary - Total revenue for 2022 was 121.253 billion yuan, with a projected increase to 183.254 billion yuan in 2024, reflecting a year-on-year growth of 21.12% [2] - The net profit attributable to shareholders for 2022 was 7.799 billion yuan, expected to decrease to 8.449 billion yuan in 2024, indicating a decline of 25.41% year-on-year [2] - The latest diluted EPS is projected to be 0.85 yuan for 2024, with a P/E ratio of 19 times [2][4] Future Outlook - The company is expected to benefit from a strong new car cycle and enhanced product competitiveness through partnerships with technology firms like Huawei [4] - The global expansion strategy aims to optimize profit structure and open up long-term development opportunities [4]