Investment Rating - The report initiates coverage with a "Buy" rating for Chery Automobile [6][3]. Core Insights - Chery Automobile is positioned as a leading player among domestic car manufacturers, focusing on the transition to new energy vehicles, high-end market penetration, and international expansion to drive new growth [1][18]. - The company has established a clear brand matrix consisting of five brands: Chery, Jetour, Exeed, iCAR, and Zhijie, which cater to various market segments from mainstream to high-end and from fuel to new energy vehicles [1][18][21]. - Chery's sales are projected to grow significantly, with a compound annual growth rate (CAGR) of 36.7% for its main brand from 2022 to 2024, and a notable increase in export sales [2][3]. Financial Summary - Revenue forecasts for Chery Automobile are as follows: 2025 at 315 billion CNY, 2026 at 394.3 billion CNY, and 2027 at 485.6 billion CNY, with corresponding net profits of 16.22 billion CNY, 21.36 billion CNY, and 27.19 billion CNY [3][4]. - The company is expected to maintain a strong net profit margin, with a projected price-to-earnings (PE) ratio of 10.40 for 2025, decreasing to 6.20 by 2027 [3][4]. Sales and Market Position - In the 5-20W price segment, Chery ranks second in wholesale sales, with a significant increase in sales from 1.75 million units in 2023 to 2.375 million units in 2024, driven by its strong performance in the new energy vehicle sector [2][3]. - The overall penetration rate of new energy vehicles in the market is 44.9%, with Chery's brands showing robust growth across all segments [2][3]. Brand Performance - The main brand Chery is expected to achieve sales of 1.643 million units in 2024, while Jetour, Exeed, iCAR, and Zhijie are also projected to see substantial sales increases, reflecting the effectiveness of the company's diversified brand strategy [2][21]. - The Jetour brand is particularly noteworthy, with a projected CAGR of 77.7% from 2022 to 2024, indicating strong market demand for its offerings [2][3]. Technological Advancements - Chery has made significant investments in technology, focusing on five key areas: Mars architecture, Kunpeng power, Lion smart cockpit, Falcon intelligent driving, and Galaxy ecosystem, which are expected to enhance its competitive edge in the automotive industry [1][64].

Core Viewpoint - Chery Automobile has launched the new Fengyun X3 and Fengyun X3PLUS models under its Fengyun brand, targeting young and female consumers with stylish and practical electric vehicles [1] Group 1: Product Launch Details - The Fengyun X3 is priced starting at 89,900 yuan, while the Fengyun X3PLUS starts at 109,900 yuan [1] - The Fengyun X3 is positioned as a "stylish outdoor box" aimed at young and female users, offering a pure electric two-wheel drive option [1] - The Fengyun X3PLUS is marketed as a "smart and fun outdoor box" for tech enthusiasts and urban families, providing both pure electric two-wheel and four-wheel drive options [1] Group 2: Product Upgrades - The Fengyun X3 features significant upgrades in six areas: design, power, intelligence, configuration, and quality, with a total of 100 upgrade points compared to the iCAR03 [1] - The Fengyun X3PLUS boasts enhancements in seven areas, including design, power, intelligence, configuration, and quality, with 110 upgrade points over the iCAR03T [1] - Both models emphasize leading advantages with "six class-first features, six unique features, and eight standard configurations across the series," focusing on "smart companionship" and "worry-free experience" for users [1]