SAIC MOTOR(600104) 华创证券·2025-05-13 13:30Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 20.8 yuan, indicating an expected upside of 27% from the current price of 16.45 yuan [1][7]. Core Views - The company's performance in Q1 2025 shows significant improvement, with a revenue of 140.9 billion yuan, a year-on-year increase of 1.6%, and a quarter-on-quarter increase of 29%. The net profit attributable to shareholders reached 3.02 billion yuan, up by 3.1 billion yuan year-on-year and 82.6 billion yuan quarter-on-quarter, marking a turnaround from losses [6]. - The company has undergone a comprehensive reform in its passenger vehicle segment, aiming to enhance operational efficiency and reduce costs. The "Large Passenger Vehicle Segment" is expected to launch 10 new or significantly updated models in 2025, including 8 new energy vehicles [6]. - A partnership with Huawei has been established to create the "Shangjie" brand, which is anticipated to have a large market potential and optimistic sales outlook. The first model is expected to be launched in Q4 2025 [6]. - The company's current valuation is considered low, with a price-to-earnings ratio (PE) of 158 for 2025, and a price-to-book ratio (PB) of 0.6, indicating favorable investment value [6]. Financial Summary - The total revenue for 2024 is projected at 627.59 billion yuan, with a year-on-year growth rate of 15.7%. The net profit attributable to shareholders is expected to be 16.66 billion yuan, reflecting a substantial year-on-year growth of 88.2% [2][6]. - For 2025, revenue is estimated at 646.25 billion yuan, with a modest growth rate of 3.0%. The net profit is forecasted to soar to 12.04 billion yuan, a staggering increase of 622.8% compared to 2024 [2][6]. - The earnings per share (EPS) is projected to rise from 0.14 yuan in 2024 to 1.04 yuan in 2025, indicating a strong recovery in profitability [2][6].