According to a research report released by Southwest Securities, it gave Ideal Auto - W (02015) “buy” rating first. The revenue for 2023-25 is expected to be 1215.1, 2221, and 325.78 billion yuan. Revenue will continue to grow over the next three years, with a target price of HK$191.32. The company is a leading manufacturer of new energy vehicles in China and will continue to benefit from the booming development of the NEV market. The company's L series models are well received by users. The launch of new models is imminent, and it is expected that the order volume will continue to grow rapidly.
The main views of Southwest Securities are as follows:
Performance summary:
Ideal Auto's revenue for the third quarter of 2023 was 34.68 billion yuan, up 271.2% year on year, up 21.0% month on month; net profit was 2.81 billion yuan, reversal of losses year on year, up 21.8% month on month.
The company's revenue for the third quarter of 2023 increased year-on-year.
On the revenue side, the revenue of Q3 in 2023 was 34.68 billion yuan, an increase of 271.2% over the previous year, a record high in a single quarter. On the profit side, Q3 net profit was 2.81 billion yuan, an increase of 4.45 billion yuan over the same period in 2022, and has achieved four consecutive quarters of profit.
Delivery performance was excellent, with a record number of quarterly deliveries.
The company delivered 105108 new energy vehicles in the third quarter, a year-on-year increase of 296.3%, a record high. The company ranked second in the sales volume of Chinese new energy brands above 200,000 yuan in the third quarter, ranking first in sales of SUV models over 300,000 yuan and new energy vehicles over 300,000 yuan. As of the end of the third quarter of 2023, Ideal Auto's cumulative customer delivery volume has exceeded 500,000 vehicles.
The L series models have been recognized by users, and the new pure electric models are progressing smoothly.
The company's SUV series with extended range electric platforms - the Ideal L series model, is widely welcomed by the market. Among them, the Ideal L9 is the largest SUV sales champion, and the Ideal L7 and Ideal L8 rank first and second in sales of medium and large SUVs, respectively. The company's first pure electric MPV model, Ideal MEGA, will be officially released in December 2023 and delivered in February 2024. Ideal Mega has a unique shape and an ultra-low wind resistance coefficient of 0.215cd, and is expected to become a high-end pure electric explosion of more than 500,000 yuan.
The core technology is fully self-researched, and R&D and innovation capabilities continue to improve.
The company built its own supply chain system, mastered core technology, ensured stable quality and supply, and continued to invest heavily in R&D to improve automotive performance and optimize user experience. The company has further reduced the cost of electric vehicles through a full-stack self-developed 5-in-1 drive system and a high-voltage 3-in-1 drive system. In order to meet the long-distance travel needs of families, the company achieved a battery life of 500 kilometers in 12 minutes through 5C battery technology, an 800V high-voltage platform, and an overcharging network, and the energy charging experience reached a level comparable to that of traditional fuel vehicles.
Risk warning: Risks such as new model orders falling short of expectations and downstream demand falling short of expectations.