BAIC BluePark(SH:600733) Soochow Securities·2024-05-23 23:30Investment Rating - The report assigns a "Buy" rating for the company for the first time [1]. Core Views - The company is expected to benefit from the collaboration with Huawei's Hi+ Smart Selection brand, which is anticipated to drive growth in the high-end market segment [3][47]. - The company has a strong historical background as the first joint-stock electric vehicle manufacturer in China, with a dual-brand strategy involving ARCFOX and BEIJING [3][11]. - Future growth is projected through both internal development and strategic partnerships, particularly with Huawei, which is expected to enhance the company's product offerings and market presence [3][36]. Summary by Sections Historical Review - The company was established in 2009 and rebranded as BAIC Blue Valley in 2018, focusing on electric vehicles [3][11]. - The dual-brand strategy includes ARCFOX, which targets high-performance electric vehicles, and BEIJING, which primarily serves the B2B market [3][21]. Future Outlook - The luxury car market in China has been growing steadily, with a significant opportunity for electric vehicles in the segment [3][36]. - The first model under the Huawei Smart Selection brand, the Enjoy S9, is expected to launch in 2024, leveraging Huawei's brand recognition and technological advantages [3][50]. - The company is also making strides in international markets, having signed orders for 200 vehicles in Spain and pursuing opportunities in Europe, the Middle East, South Asia, and Latin America [3][54]. Profit Forecast and Investment Advice - Revenue projections for 2024-2026 are estimated at 30,776 million, 69,088 million, and 85,397 million yuan, respectively, with net profits expected to improve from losses to a profit of 795 million yuan by 2026 [4][56]. - The report suggests that the company should enjoy a higher valuation compared to its peers due to its upcoming product launches and clear international expansion strategy [4][59].