ECARX(US:ECX) Soochow Securities international·2024-05-28 08:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of $6 [1][4]. Core Insights - The company reported Q1 2024 revenue of 930 million yuan, a year-on-year increase of 21.3%, and a net profit attributable to the parent company of -270 million yuan, showing slight improvement from the previous quarter [3]. - The company is expanding its global business and deepening international cooperation, having served 17 OEMs and 26 automotive brands, including a strategic agreement with China FAW in the smart cockpit sector [3][4]. - The company is committed to its positioning as an incremental component supplier, launching three new cockpit platforms based on Qualcomm SoC to meet global automotive demands [4]. Financial Performance and Forecast - The company forecasts total revenue for 2024, 2025, and 2026 to be 5.85 billion yuan, 8.21 billion yuan, and 10.53 billion yuan respectively, with year-on-year growth rates of 25.4%, 40.1%, and 28.4% [2][4]. - The net profit attributable to the parent company is expected to improve significantly, reaching 295 million yuan by 2026, representing a 696% increase compared to 2025 [2][4]. - The report indicates a P/E ratio of 12 for 2025 and 2 for 2026, suggesting strong future earnings potential [2][4]. Strategic Developments - The company has established a strategic partnership with Microsoft to enhance research and development efficiency and improve automotive intelligence [3][4]. - Recent acquisitions include Hubei Dongjun Automotive Electronics Technology Co., Ltd. and Suzhou Light Matrix Optoelectronics Technology Co., Ltd., aimed at enhancing local production capacity and developing laser radar technology [4].