Core Viewpoint - The company has shown significant growth in revenue and profit in Q1 2025, indicating a positive trend in the commercial vehicle industry, particularly in the heavy-duty truck segment [2][3][7]. Financial Performance - In Q1 2025, the company achieved a revenue of 14.8 billion yuan, with year-on-year growth of 70.1% in net profit attributable to shareholders, and a quarter-on-quarter turnaround from losses [2]. - The gross profit margin decreased to 10.9%, with a reduction in expense ratios for sales, management, and R&D [4]. - Non-recurring gains and investment income saw significant increases, with non-recurring gains reaching 207 million yuan, primarily due to asset disposals [5]. Market Position - The company’s market share in the heavy-duty truck segment increased significantly, with Q1 2025 sales of 36,000 units, representing a year-on-year increase of 19.4% [3]. - The average selling price of trucks rose to 101,000 yuan, reflecting an increase of 42.0% year-on-year [3]. Future Outlook - The commercial vehicle industry is expected to recover, with the company planning to achieve a revenue target of 68 billion yuan in 2025, representing a year-on-year growth of 42.6% [7]. - The elimination of losses from long-term equity investments is anticipated to positively impact the company's performance moving forward [7]. Profit Forecast and Valuation - The company maintains profit forecasts for 2025-2026 at 1.666 billion yuan and 2.044 billion yuan respectively, with an estimated EPS of 0.21 and 0.26 yuan [8]. - The current valuation is considered low, with expectations of recovery in the industry, leading to a "buy" rating for the company [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The Q1 performance exceeded expectations, with a projected significant year-on-year growth for the entire year [1] - The commercial vehicle industry is expected to recover, and the company is well-positioned with a comprehensive strategy in light trucks, heavy trucks, buses, engines, and gearboxes [1] - The company aims to achieve a revenue of 68 billion yuan in 2025, representing a year-on-year increase of 42.6% [1] Financial Summary - Total revenue for 2023 is projected at 56,097 million yuan, with a year-on-year growth of 20.78% [1] - The net profit attributable to shareholders for 2023 is estimated at 909.48 million yuan, showing a staggering year-on-year increase of 1,262.27% [1] - The earnings per share (EPS) for 2025 is forecasted to be 0.21 yuan, with a corresponding P/E ratio of 12.36 [1] - The company reported a significant increase in heavy truck market share and average selling price in Q1 2025, with heavy truck sales reaching 36,000 units, a year-on-year increase of 19.4% [1] - The gross margin for Q1 2025 was reported at 10.9%, with a slight decline compared to previous periods [1] - Non-operating income and investment income saw notable growth, with non-operating income reaching 207 million yuan, an increase of 158 million yuan year-on-year [1] - The company has eliminated the negative impact of losses from its long-term equity investment in Fodai, allowing for a more favorable outlook for 2025 [1]