SAIC MOTOR(600104) 东方证券·2024-12-01 10:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.14 CNY [3][6]. Core Insights - The company's performance and sales have been significantly pressured in Q3, with a 17.4% year-on-year decrease in revenue to 419.646 billion CNY and a 39.4% drop in net profit to 6.907 billion CNY [2]. - The company is expected to benefit from the Shanghai state-owned enterprise reform, which may enhance its reform efforts and operational capabilities [2]. - The company is currently in a state of "broken net" with a PB ratio of 0.7, indicating a potential for value enhancement under regulatory guidance [2]. Financial Performance Summary - For the first three quarters, the company reported a revenue of 419.646 billion CNY, down 17.4% year-on-year, and a net profit of 6.907 billion CNY, down 39.4% year-on-year [2]. - In Q3 alone, revenue was 142.561 billion CNY, a 25.6% decrease year-on-year, while net profit fell to 0.280 billion CNY, a 93.5% decline year-on-year [2]. - The gross margin for Q3 was 9.6%, down 0.8 percentage points year-on-year, but improved by 1.4 percentage points quarter-on-quarter [2]. - The company’s EPS forecasts for 2024-2026 are adjusted to 0.89, 1.06, and 1.15 CNY respectively [3]. Market Position and Sales - The company’s sales volume in Q3 decreased by 37.0% year-on-year, with significant declines across various brands [2]. - The Shanghai municipal government is actively supporting the company’s transformation and reform initiatives, which may stabilize its operational capabilities and market competitiveness [2].