SAIC MOTOR(SH:600104) Changjiang Securities·2024-05-17 03:32Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a total revenue of 143.07 billion yuan in Q1 2024, a year-on-year decrease of 1.9% and a quarter-on-quarter decrease of 35.4%. The net profit attributable to shareholders was 2.71 billion yuan, down 2.5% year-on-year but up 0.6% quarter-on-quarter. The decline in revenue is attributed to the impact of inventory structure adjustments on wholesale sales, while profitability remains relatively stable amid intense market competition [2][6][7]. Summary by Sections Financial Performance - In Q1 2024, the company achieved total revenue of 1430.7 billion yuan, a year-on-year decline of 1.9% and a quarter-on-quarter decline of 35.4%. The net profit attributable to shareholders was 27.1 billion yuan, reflecting a year-on-year decrease of 2.5% but a quarter-on-quarter increase of 0.6% [2][6][7]. - The wholesale volume was affected by inventory structure adjustments, leading to a slight decline in revenue. The company sold 834,000 vehicles in Q1 2024, down 6.4% year-on-year and 49.2% quarter-on-quarter [7]. Market and Competitive Environment - The company faced a highly competitive market environment, yet its profitability remained stable. The gross margin for the automotive business in Q1 2024 was 8.8%, a decrease of 0.99 percentage points year-on-year and 1.9 percentage points quarter-on-quarter [7]. - The sales structure continued to improve, with retail performance surpassing wholesale. The company reduced channel inventory by 186,000 vehicles in Q1 2024 [7]. Strategic Developments - The company is advancing its smart electric vehicle layout and has initiated a new development mechanism to accelerate the product upgrade cycle. It has achieved mass production of solid-state batteries, enhancing energy density by over 50% and reducing costs by over 10% [8]. - The company aims to enhance its global market presence, with overseas market deliveries reaching 269,000 vehicles, a year-on-year increase of 21.3% [7][8]. Future Outlook - The company expects to see a recovery in performance driven by stabilizing joint venture sales and the new development mechanism for its self-owned brands, which is anticipated to lead to the launch of popular models and boost sales [8]. - Projected net profits for 2024, 2025, and 2026 are estimated at 15.1 billion yuan, 15.62 billion yuan, and 16.73 billion yuan, respectively, with corresponding price-to-earnings ratios of 11.4X, 11.0X, and 10.3X [8].