Minsheng Securities·2024-06-03 07:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 9.47, corresponding to a PE ratio of 12/8/6 for the years 2024-2026 [4][19]. Core Insights - The company reported strong sales performance in May 2024, with total wholesale sales reaching 161,000 units, a year-on-year increase of 33.8% and a month-on-month increase of 4.8%. Cumulative sales from January to May reached 790,000 units, up 42.0% year-on-year [1]. - The electric vehicle segment showed remarkable growth, with May sales of 58,673 units, a year-on-year increase of 117.0% and a month-on-month increase of 14.1%. The penetration rate for electric vehicles reached 36.5% [1]. - The company is expanding its global market presence, with May export sales of 36,890 units, accounting for 23.0% of total sales, and a year-on-year increase of 61.3% [2]. Summary by Sections Sales Performance - In May 2024, the company achieved total wholesale sales of 161,000 units, with electric vehicle sales contributing significantly to this growth. The flagship model, Zeekr 001, continued to perform well, achieving sales of 18,616 units in May, a month-on-month increase of 15.7% [1]. - The cumulative sales for the electric vehicle segment from January to May reached 196,000 units, reflecting a year-on-year growth of 111.9% [1]. Product Development - The company is set to launch new models, including the Zeekr MIX and Galaxy E5, which are expected to enhance its product lineup and drive demand in the second half of 2024 [1]. - The product cycle appears strong, with several new models planned for release, including two SUVs from the Galaxy brand and a new electric model from Lynk & Co [1]. Financial Projections - The company forecasts revenues of RMB 224.8 billion, RMB 268.7 billion, and RMB 298.8 billion for the years 2024, 2025, and 2026, respectively. Net profits are projected to be RMB 7.4 billion, RMB 11.6 billion, and RMB 15.0 billion for the same years [3][16]. - The earnings per share (EPS) are expected to grow from RMB 0.74 in 2024 to RMB 1.49 in 2026, indicating a positive outlook for profitability [3][16].