Core Viewpoint - Seres has officially listed on the Hong Kong Stock Exchange, becoming the first luxury new energy vehicle company in China to achieve a dual listing in both A-share and H-share markets, raising a net amount of HKD 14.016 billion and achieving a market capitalization exceeding HKD 220 billion on its listing day [2] Group 1: IPO and Market Performance - The IPO of Seres is the largest among Chinese automotive companies to date and the largest globally in 2023 [2] - The public offering was oversubscribed by 133 times, with total financing subscriptions exceeding HKD 170 billion [2] - Despite the initial market enthusiasm, Seres' stock price fell by 2.97% on the first trading day, closing at HKD 131.5, matching the issue price [2] Group 2: Financial Performance - For the first three quarters of the year, Seres reported a net profit of CNY 5.312 billion, a year-on-year increase of 31.56% [3] - In the third quarter alone, net profit was CNY 2.371 billion, showing a decline of 1.74%, while revenue reached CNY 48.133 billion, up 15.75%, indicating a situation of increasing revenue but decreasing profit [4] Group 3: Dependency on Huawei and Market Risks - Seres has a significant dependency on the sales of the AITO brand vehicles, which are projected to account for 60.3%, 67.9%, and 90.9% of total revenue from 2022 to 2024 [4] - The company acknowledges potential risks associated with its reliance on Huawei, stating that any disruption in their partnership could adversely affect its business and financial performance [4] Group 4: Strategic Initiatives - Approximately 70% of the funds raised from the IPO will be allocated to research and development, with 20% directed towards diversifying marketing channels and expanding overseas sales and charging network services [5] - The R&D investment will focus on enhancing core technology capabilities, upgrading the Magic Cube technology platform, and improving AI technology for smarter systems [5] - Seres is expanding its global presence, currently covering multiple countries in Europe, the Middle East, the Americas, and Africa, and aims to leverage its dual capital platform for continued innovation and market expansion [5]

Core Insights - The market performance of the new Zhiyin model has been mixed, with a decline in customer visits due to surrounding construction affecting accessibility [2][4] - The most popular configuration is the rear-drive Qiankun version, with white and gold being the preferred colors, while blue has seen poor sales [4][10] - Customer demographics show that two-thirds are ordinary families looking for daily commuting vehicles, with a notable interest in intelligent driving features [6][10] Market Performance - Daily customer visits have decreased from around 10 groups to about 6, primarily due to road construction nearby [2] - The waiting period for the most popular configuration is estimated at 1-2 weeks, while less popular options may take up to 2 months [4] Customer Preferences - The most frequently compared models are the Shangjie H5 and the Zhiji LS6, with concerns about electric range being a significant factor in customer decision-making [10][11] - Customers are particularly drawn to the intelligent driving capabilities and the comfort of the zero-gravity seats [13][14] Purchase Behavior - Financing options include a 5-year loan with no interest for the first 2 years, and additional incentives such as a free upgrade package and discounts for trade-ins [17][18] - Many customers express regret for not opting for additional features after purchase, indicating a tendency to be cost-conscious initially [22] Maintenance and Costs - Regular maintenance is required every year or every 10,000 kilometers, with a standard check costing around 120 yuan [23]

Order Situation - The average new orders per store range from 15 to 20 units, with a store visit conversion rate of 20% [1][3] - The launch price meets customer expectations, leading to a small peak in orders on the launch day, followed by stable test drive peaks [3] - Post-launch orders remain highly concentrated in first and second-tier cities, with the Yangtze River Delta and Pearl River Delta significantly outperforming the national average [4] Customer Profile - The typical customer age ranges from 30 to 45 years, with a male proportion of 65% [4][6] - Customers tend to have strong consumption capabilities, often owning BBA (BMW, Benz, Audi) vehicles, and show a strong preference for the design of the S9T, valuing Huawei's intelligent driving and driving experience [6] - The proportion of female customers has increased, with 40% of orders coming from non-Huawei digital users, indicating a breaking of traditional customer segments [6] Configuration Preferences - The preference for powertrain types is 60% for pure electric and 40% for range-extended versions [5][7] - Configuration choices show a 60% preference for the Max version and 40% for the Ultra version [5] - The main exterior color chosen is "Xianzhong Green," while the primary interior color is "White Sand Apricot" [5][7] - Many customers prefer the daily-use pure electric version, with a significant number opting for the Max with additional options due to a 10,000 yuan selection incentive [7] Competitive Landscape - There is minimal direct competition, with over 90% of customers being BBA upgrade or replacement buyers [8] - Customers are not making explicit comparisons with fuel or other new energy vehicles, and many are waiting for other Hongmeng new models to be launched for comparison [8]

Core Insights - Deep Blue Automotive reported global vehicle deliveries of 28,235 units in August, representing a year-on-year increase of 40% and a month-on-month increase of 4% [2] - The Deep Blue S05 achieved global sales of 12,184 units in August, marking the third consecutive month of sales exceeding 11,000 units [2] - The 2026 model of Deep Blue L07 was launched on August 13, featuring Huawei's Qian Kun intelligent driving system as standard across all models, positioning it as the only sedan in the 150,000 RMB price range with this feature [2] - The new Deep Blue S07 was unveiled at the Chengdu Auto Show on August 29, equipped with Qualcomm's fourth-generation digital cockpit platform Snapdragon 8295P and standard Huawei Qian Kun intelligent driving ADS SE across all models [2] - The Deep Blue S07 is a mid-size SUV with a fuel consumption rate of 3.8L/100km [2]

Group 1 - Huawei and SAIC have launched the first SUV of the Shangjie brand, the Shangjie H5, with a starting pre-sale price of 169,800 yuan [2] - The Shangjie H5 has received over 50,000 small orders within 18 hours of its pre-sale, marking a significant entry for Huawei's HarmonyOS driving technology into the budget electric vehicle market [2] - The Shangjie H5 is positioned against competitors like Leapmotor C11, Xpeng G6, and Deep Blue S07, offering advanced Huawei technology at a more accessible price point [2] Group 2 - SAIC Group reported a 43.49% year-on-year increase in new energy vehicle sales, totaling 763,500 units from January to July this year [3] - The Shangjie H5 features both range-extended and pure electric powertrains, with the range-extended version offering a maximum range of 1,360 km and the pure electric version providing up to 655 km [3] - The Shangjie H5 is developed based on the SAIC Roewe ES39 model and utilizes the SAIC Star Cloud pure electric platform, benefiting from SAIC's supply chain [3] Group 3 - Over 1,500 dealers, including luxury brand 4S stores like Porsche and Volvo, have expressed interest in joining the Shangjie brand [4] - The official launch event for the Shangjie H5 is scheduled for September 23, with potential price adjustments based on continued demand [4] - The Shangjie brand faces challenges in brand recognition and consumer trust regarding quality control and after-sales service [3][4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.25 CNY, based on a comparable company PE average valuation of 25 times for 2025 [2][5]. Core Insights - The launch of the Shangjie H5 is expected to significantly enhance the company's sales and profitability, with the vehicle's advanced technology and competitive pricing likely to capture a substantial market share in the 200,000 CNY segment [10]. - The company is anticipated to achieve a turnaround in its autonomous brand profitability this year, driven by internal reforms and the introduction of new models like the MG4, which has shown strong pre-order interest [10]. Financial Forecasts - The projected earnings per share (EPS) for 2025-2027 are 1.05 CNY, 1.17 CNY, and 1.31 CNY respectively, reflecting an upward adjustment from previous estimates [2]. - Revenue forecasts indicate a gradual recovery, with expected revenues of 638.11 billion CNY in 2025, 687.20 billion CNY in 2026, and 742.17 billion CNY in 2027, showing growth rates of 3.9%, 7.7%, and 8.0% respectively [4][11]. - The gross margin is projected to improve from 9.5% in 2023 to 11.5% by 2027, indicating enhanced operational efficiency [4][11]. Market Performance - The company has shown strong relative performance, with a 58.74% increase over the past year compared to the Shanghai Composite Index [6]. - The stock price as of August 25, 2025, was 20.53 CNY, with a 52-week high of 21.19 CNY and a low of 11.43 CNY [5].