SERES(SH:601127) Guoxin Securities·2024-05-06 01:33Investment Rating - The investment rating for the company is "Accumulate" [4][24][28] Core Views - The company achieved a turnaround in net profit in Q1 2024, indicating the potential for an upward operational cycle [1][5][24] - The company has maintained a strong focus on R&D and product development, which has led to improved product competitiveness and market presence [1][24][28] - The partnership with Huawei is expected to enhance the company's competitive edge in the automotive market [1][24][28] Financial Performance Summary - In 2023, the company reported revenue of 35.84 billion yuan, a year-on-year increase of 5.1%, with a net profit of -2.45 billion yuan [1][2][5] - For Q1 2024, the company achieved revenue of 26.56 billion yuan, a year-on-year increase of 421.8%, and a net profit of 220 million yuan [1][5][24] - The gross margin for Q1 2024 was 21.5%, up 12.6 percentage points year-on-year, driven by increased sales volume and a higher proportion of high-priced models [1][5][24] Revenue and Profit Forecast - The company forecasts net profits of 3.24 billion yuan, 6.04 billion yuan, and 8.30 billion yuan for 2024, 2025, and 2026 respectively [2][27][28] - Earnings per share (EPS) are projected to be 2.14 yuan, 4.00 yuan, and 5.50 yuan for the same years [2][27][28] Product Development and Market Strategy - The company has launched several new models, including the AITO Wenjie M5, new M7, and M9, which have quickly gained market traction [1][24][28] - The company is focusing on a "new luxury" concept that combines traditional luxury with technological advancements [1][24][28] Cost Management and Efficiency - The company has demonstrated effective cost control, with sales, management, and R&D expense ratios improving in Q1 2024 compared to previous periods [1][5][24] - The net cash flow from operating activities in 2023 was 6.398 billion yuan, showing a significant improvement from -1.169 billion yuan in 2022 [1][5][24]