Minsheng Securities·2024-05-22 06:32Investment Rating - The report maintains a "Buy" rating for the company with a current price of 80.65 HKD [4][8]. Core Insights - The company reported Q1 2024 revenue of 25.63 billion RMB, showing a year-on-year increase of 36.4% but a quarter-on-quarter decrease of 38.6% [2][3]. - Vehicle sales reached approximately 80,000 units in Q1 2024, reflecting a year-on-year increase of 52.9% but a quarter-on-quarter decrease of 39.4% [2][3]. - The automotive business gross margin was 19.3%, down 0.4 percentage points year-on-year and 3.4 percentage points quarter-on-quarter, primarily due to pricing adjustments [3][4]. - Non-GAAP net profit for Q1 2024 was 1.28 billion RMB, a year-on-year decrease of 9.4% [2][3]. Revenue Growth and Profitability - Q1 2024 total revenue was 25.63 billion RMB, with automotive revenue at 24.25 billion RMB, up 32.3% year-on-year but down 39.9% quarter-on-quarter [3][4]. - The average selling price (ASP) decreased from 306,000 RMB in Q4 2023 to 302,000 RMB in Q1 2024 due to changes in product mix and pricing strategies [3][4]. - Gross profit for the automotive business was 4.69 billion RMB, with a gross margin of 19.3% [3][4]. Cash Reserves and Investment - As of Q1 2024, the company had cash and cash equivalents totaling 98.9 billion RMB, indicating strong liquidity [6]. - R&D expenses for Q1 2024 were 3.05 billion RMB, up 64.6% year-on-year, reflecting increased staffing and new product development costs [4][6]. Sales and Distribution Network - The company operated 481 retail centers across 144 cities and 361 service centers in 210 cities as of Q1 2024 [6]. - The charging network included over 400 supercharging stations, with plans to expand to over 2,000 by the end of 2024 [6]. Future Outlook - The company anticipates Q2 2024 vehicle deliveries between 105,000 and 110,000 units, representing a year-on-year growth of 21.3% to 27.1% [6][8]. - Projected revenues for 2024-2026 are 160.21 billion RMB, 209.92 billion RMB, and 263.63 billion RMB, respectively [8][9].