Core Viewpoint - SAIC Motor Corporation has shown a recovery in vehicle sales in the first half of 2025, with a total of 2.053 million vehicles sold, representing a year-on-year increase of 12.4% [1][4] Sales Performance - In the first half of 2025, SAIC's total vehicle sales reached 2.053 million units, with a significant increase in sales of its own brands and new energy vehicles, which grew by 21.1% and 40.2% respectively [1][4] - The sales in June 2025 were 365,000 units, marking a year-on-year growth of 21.6%, achieving six consecutive months of year-on-year sales increases [1][4] - The company aims to exceed 4.5 million vehicle sales in 2025, following a target of 4.013 million in 2024, which saw a decline of 20.07% [1][8] Profitability - In the first quarter of 2025, SAIC reported a net profit attributable to shareholders of 3.023 billion yuan, an increase of 11.4% year-on-year, ending a six-quarter streak of declines [3][9] - The company’s revenue for the first quarter of 2025 was 140.86 billion yuan, a slight decrease of 1.55% year-on-year [9] Brand Performance - SAIC's own brand sales accounted for 1.304 million units in the first half of 2025, representing 63.5% of total sales, an increase of 4.6 percentage points from the previous year [4] - The sales of new energy vehicles reached 646,300 units in the first half of 2025, reflecting a year-on-year growth of 40.19% [5] Strategic Initiatives - The company has undergone significant personnel changes in its passenger vehicle division to enhance operational efficiency and has partnered with Huawei to develop a new brand model expected to launch in the second half of 2025 [2][8] - SAIC is collaborating with CATL to develop battery products tailored for its vehicles and is exploring vehicle-battery separation business models [2][8] Export Performance - In the first half of 2025, SAIC's export and overseas sales reached 494,100 units, a year-on-year increase of 1.27% [5] - The MG brand has maintained a leading position in the European market, with over 150,000 units delivered in the first half of 2025, achieving double-digit growth [5]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 23.75 CNY [2][5]. Core Views - The company is focusing on continuous brand development and sees overseas markets as a significant growth driver. Despite challenges such as increased tariffs on electric vehicles in the EU, the company has maintained a leading position in the European market with its MG brand [1][9]. - The company's overall sales have shown a consistent upward trend, achieving a year-on-year increase for six consecutive months. In June, the wholesale sales reached 365,300 units, a 21.6% increase year-on-year [9]. - The company is experiencing positive results from its reforms, with steady growth in its domestic brand sales and a successful partnership with Huawei, which is expected to enhance product capabilities [9]. Financial Information Summary - **Revenue Forecast**: The projected revenues for 2025-2027 are 638.11 billion CNY, 687.196 billion CNY, and 742.172 billion CNY, respectively, with growth rates of 3.9%, 7.7%, and 8.0% [4][10]. - **Net Profit**: The net profit attributable to the parent company is expected to rebound significantly from 1.666 billion CNY in 2024 to 11.003 billion CNY in 2025, reflecting a growth of 560.3% [4][10]. - **Earnings Per Share (EPS)**: The EPS is forecasted to be 0.95 CNY in 2025, increasing to 1.03 CNY in 2026 and 1.15 CNY in 2027 [2][4]. - **Profit Margins**: The gross margin is expected to improve from 9.4% in 2024 to 11.1% in 2027, while the net margin is projected to stabilize around 1.7% [4][10]. - **Valuation Ratios**: The price-to-earnings (P/E) ratio is forecasted to be 16.8 in 2025, decreasing to 13.9 by 2027, indicating a potential increase in valuation attractiveness [4][10].