GWMOTOR(601633) 群益证券·2024-04-25 08:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [2][5]. Core Insights - The company reported Q1 2024 earnings that exceeded expectations, with revenue of RMB 42.86 billion, a year-over-year increase of 47.6%, and a net profit of RMB 3.23 billion, reflecting a staggering year-over-year growth of 1752% [2][3]. - The company is actively expanding its overseas market presence, with a significant increase in export sales, which are expected to grow by over 50% this year [3]. - The company is accelerating its transformation towards electrification and intelligence, while also enhancing its marketing system to improve overall product competitiveness [2][3]. Summary by Sections Company Overview - The company operates primarily in the automotive industry, with a market capitalization of RMB 152.67 billion and a share price of RMB 24.75 as of April 24, 2024 [1]. - Major shareholders include Baoding Innovation Great Wall Asset Management Co., holding 59.87% of shares [1]. Financial Performance - Q1 2024 results showed a net profit of RMB 3.23 billion, with an EPS of RMB 0.38, marking a significant turnaround from previous losses [2][3]. - The company’s gross margin improved by 4 percentage points year-over-year, attributed to cost reductions in components and increased sales of high-margin products [2]. Sales and Market Expansion - In Q1 2024, the company sold 275,000 vehicles, a year-over-year increase of 25.1%, with exports contributing significantly to this growth [3]. - The company anticipates reaching export sales of 400,000 to 500,000 vehicles this year, representing a year-over-year increase of 27% to 58% [3]. Future Projections - Projected net profits for 2024, 2025, and 2026 are RMB 11.2 billion, RMB 13.8 billion, and RMB 16.6 billion, respectively, with corresponding EPS of RMB 1.31, RMB 1.62, and RMB 1.95 [2][4]. - The report indicates that the current A-share price corresponds to P/E ratios of 19, 15, and 13 for the years 2024, 2025, and 2026, respectively, while H-share P/E ratios are 7.7, 6.3, and 5.2 [2][4].