CHINA DRAGON SECURITIES·2024-05-06 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company reported a significant increase in Q1 2024 performance, with a year-on-year net profit growth of 1752.6% and a non-recurring net profit growth of 1032.9% [2][3] - The revenue for Q1 2024 increased by 47.6% year-on-year, driven by sales growth and cost control, with a gross margin of 20.0%, up 3.97 percentage points year-on-year [2][3] - The company is actively expanding its overseas channels, covering over 170 countries and regions, and aims to accelerate its high-end product strategy [2][3] Summary by Sections Financial Performance - In Q1 2024, the company achieved a net profit of 12.0 billion yuan, including government subsidies, with a gross margin of 20.0% [2] - The total revenue for Q1 2024 was 37.5 billion yuan, with a cumulative sales volume of 275,000 vehicles, representing a 25.2% increase year-on-year [3] - The average selling price (ASP) per vehicle in Q1 2024 was 156,000 yuan, an increase of 24,000 yuan year-on-year [3] Future Outlook - The company is expected to continue its product high-end cycle, with projected net profits of 9.879 billion yuan, 12.296 billion yuan, and 14.694 billion yuan for 2024, 2025, and 2026 respectively [3] - The current stock price corresponds to a price-to-earnings (P/E) ratio of 22.8, 18.3, and 15.3 for the years 2024, 2025, and 2026 [3] Strategic Initiatives - The company is implementing a "ONE GWM" global strategy, focusing on expanding into European, ASEAN, and Latin American markets [2] - The launch of the Long Wall Intelligent Driving System is expected to enhance the brand's high-end positioning and accelerate the smart technology integration [2]