Jinwu Financial News | According to Haitong International Development Research Report, Ideal Automobile-W (02015)'s 1Q24 revenue was 25.63 billion yuan, +36.4% year-on-year and -38.6% month-on-month. Automobile sales revenue for the single quarter was 24.25 billion yuan, +32.3% YoY and -39.9% YoY. The Q1 car delivery volume reached 80,400 vehicles, +52.9% year over year and -39.0% month over month, exceeding the company's reduced delivery guidelines of 76,000-78,000 vehicles. The ideal 1Q24 gross profit margin was 20.6%, +0.2pcts year over year, and -2.9 pcts month-on-month, maintaining a relatively healthy level; the gross profit margin for automobiles was 19.3%, -0.5 pcts year over year, and -3.4 pcts month-on-month, mainly due to the decline in ASP and the return of warranty reserves due to adjustments in the Q1 pricing strategy.
The bank continued that it is ideal to postpone the release of pure electric models and focus on repairing product line sales. Delivery performance in the second half of the year will be the key. The company does not consider price cuts in the short term, and the low level of ASP operation will increase its efforts to reduce costs and increase efficiency. The bank expects that the company's profits will continue to be under pressure in the first half of the year, and it is expected to gradually improve in the second half of the year with a significant recovery in sales. The bank expects 2024-26 EPS to be 6.04/8.03/11.60 yuan (down 30%/32%/23%), giving the company 23xPE in 2024, reducing the target price by 27% to $149.80 (based on HK$1=RMB0.9276, corresponding 1.7xps in 2024; the target price for the previous period is HK$206.60, based on the 24-year 22xPE and HK$1=RMB0.92 exchange rate assumptions), maintaining the “superior to the market” rating.