GAC GROUP(601238) 东吴证券·2025-01-14 01:31Investment Rating - The report maintains a "Buy" rating for GAC Group [8] Core Views - The company's 2024 performance is expected to align with forecasts, with a projected net profit of 8-12 billion RMB, representing a year-on-year decline of 72.91% to 81.94% [8] - The company is increasing its business policy investments to counteract market competition, with an estimated 18 billion RMB allocated for sales subsidies, impacting net profit [8] - GAC Group is establishing a GH project company in collaboration with Huawei, aiming to develop a new luxury smart electric vehicle brand [8] - Due to higher-than-expected business policy investments, the net profit forecast for 2024 has been revised down to 10.7 billion RMB from 14 billion RMB, while maintaining profit expectations for 2025 and 2026 at 41 billion RMB and 54 billion RMB respectively [8] Financial Summary - Total revenue for 2024 is projected at 116.1 billion RMB, a decrease of 10.48% year-on-year [8] - The diluted EPS for 2024 is expected to be 0.10 RMB per share, with a P/E ratio of 80.10 [8] - The company anticipates a significant recovery in net profit in 2025 and 2026, with growth rates of 286.65% and 30.26% respectively [8] - The company's total assets are projected to grow from 218.4 billion RMB in 2023 to 266.7 billion RMB by 2026 [9]