CHANGAN AUTOMOBILE-B(SZ:000625) Soochow Securities·2024-05-07 05:30Investment Rating - The investment rating for Changan Automobile is "Buy" (maintained) [1] Core Views - The collaboration with Huawei on the investment in the intelligent technology company is progressing smoothly, with due diligence nearly completed and final transaction documents expected to be signed by August 31, 2024 [2][3] - The company is set to launch nearly 10 new models in 2024, focusing on electric vehicles and enhancing competitiveness through collaboration with Huawei [3] - The financial forecasts for 2024-2026 remain unchanged, with projected net profits of 8.4 billion, 11.1 billion, and 12.7 billion yuan respectively, reflecting a year-on-year growth of -25%, +31%, and +15% [3] Financial Performance and Forecasts - Total revenue is projected to grow from 151.3 billion yuan in 2023 to 250.1 billion yuan in 2026, with year-on-year growth rates of 24.78%, 21.12%, 20.17%, and 13.55% [1][8] - The net profit attributable to the parent company is expected to decline to 8.4 billion yuan in 2024, followed by increases to 11.1 billion yuan in 2025 and 12.7 billion yuan in 2026 [1][8] - Earnings per share (EPS) are forecasted to be 0.85 yuan in 2024, 1.11 yuan in 2025, and 1.28 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 17, 13, and 12 [1][8] Market Data - The closing price of Changan Automobile is 14.77 yuan, with a market capitalization of approximately 146.5 billion yuan [5] - The stock has a price-to-book ratio of 2.00 and a total circulating A-share market value of 121.3 billion yuan [5][6] Strategic Outlook - The company is committed to a strong new vehicle cycle and a decisive transition to electrification, with ongoing collaboration with Huawei to enhance smart driving capabilities [3] - The global strategy aims to strengthen overseas product introduction and channel layout, optimizing profit structure and opening up long-term development space [3]