SAIC MOTOR(SH:600104) Guolian Securities·2024-06-10 10:02Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near future [2]. Core Views - The company has experienced a decline in wholesale vehicle sales, with May sales at 332,000 units, down 17.1% year-on-year. Cumulative sales from January to May reached 1.526 million units, a decrease of 8.4% compared to the previous year [3][4]. - Despite the overall sales decline, the company's self-owned brands showed strong performance, with a significant increase in sales for the Zhiji L6 model, which began deliveries in late May [4][5]. - The company is accelerating its transition to new energy vehicles, with May deliveries of 97,000 units, up 27.4% year-on-year, and cumulative deliveries of 433,000 units from January to May, an increase of 33.4% [5][6]. - The company is focusing on technological advancements, including the introduction of solid-state batteries expected to be mass-produced by 2026, which will enhance product competitiveness [6]. Financial Forecasts and Valuation - The company is projected to achieve revenues of 744.7 billion yuan, 778.4 billion yuan, and 822.8 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 2.6%, 4.5%, and 5.7% [7]. - Net profit attributable to shareholders is expected to be 15.7 billion yuan, 17.2 billion yuan, and 18.5 billion yuan for the same years, with growth rates of 11.2%, 9.7%, and 7.7% [7]. - The earnings per share (EPS) are forecasted to be 1.35 yuan, 1.49 yuan, and 1.60 yuan for 2024, 2025, and 2026, respectively [7].