Tianfeng Securities·2024-05-31 02:31Investment Rating - The report maintains a "Buy" rating for the company with a target price of 136 HKD, indicating an expected return of over 20% within the next six months [4][10]. Core Insights - The company reported a Q1 2024 automotive sales revenue of 24.3 billion RMB, a year-on-year increase of 32.3%, with total revenue reaching 25.6 billion RMB, up 36.4% year-on-year [1]. - The overall gross margin for Q1 2024 was 20.6%, down from 23.5% in the previous quarter, while the automotive gross margin was 19.3% [1]. - The company delivered 80,400 vehicles in Q1 2024, representing a 53% year-on-year increase, although the growth rate showed signs of slowing down [1]. - The launch of the L6 model is expected to drive market share growth, with over 41,000 orders received by May 5, 2024 [1][2]. - The introduction of a new pricing system resulted in a price reduction of 18,000 to 20,000 RMB for the L series and 30,000 RMB for the Mega model, leading to an anticipated decline in single-vehicle revenue to 285,000 to 290,000 RMB [1][2]. Summary by Sections Q1 2024 Performance - Automotive sales revenue was 24.3 billion RMB, up 32.3% year-on-year - Total revenue reached 25.6 billion RMB, a 36.4% increase year-on-year - Gross margin was 20.6%, down from 23.5% in the previous quarter [1]. Sales and Deliveries - Delivered 80,400 vehicles in Q1 2024, a 53% increase year-on-year - April deliveries were 25,800 vehicles, a slight increase of 0.4% year-on-year - The slowdown in growth is attributed to seasonal demand factors [1]. Product Launch and Market Strategy - The L6 model is expected to be a key driver for market share, with significant pre-orders - The launch of the pure electric platform has been delayed to the first half of 2025 due to infrastructure upgrades [1][2]. Financial Guidance - The company anticipates Q2 2024 sales between 105,000 and 110,000 vehicles, a year-on-year growth of 21.3% to 27.1% - Total revenue for Q2 2024 is projected to be between 29.9 billion and 31.4 billion RMB, reflecting a growth of 4.2% to 9.4% year-on-year [1].