Soochow Securities released a research report stating that it maintains the "buy" rating of zero-running cars (09863). The company has clarified the market expansion plan and channel planning for its export business. Considering that the company is in the mainstream new energy vehicle market, it has obvious advantages in many aspects of R & D/channel/supply chain management. The strategy of cooperating with Stellantis Group is clear, and it believes that zero-running should enjoy a higher valuation. The company's 2024Q1 revenue is 34powerballresultstonight.86 billion yuan,+141.7% year-on-year.
The main views of Soochow Securities are as followspowerballresultstonight：
The 2024Q1 single-quarter results were generally in line with expectations.
1) Improved product structure, ASP month-on-month increase in a single quarter: 24Q1 achieved sales of 33,000 units in a single quarter, a year-on-year increase of +217.9%. Judging from the sales structure, the proportion of T03's sales in the single quarter fell month-on-month, so the single-vehicle ASP increased by 9.4% month-on-month to 104,000 yuan. 2) The expense ratio has improved significantly year-on-year: the company's Q1 sales/management/R & D expense ratios are 12.3%/4.0%/14.9%, respectively. As of March 31, 2024, the company's sales network continues to be optimized, with a total of 510 stores covering 182 cities. Q2 Outlook: Both volume and profit are expected to be repaired. Large-scale delivery of 24 models began in Q2, and gross profit margins are expected to continue to increase;C16 may begin delivery at the end of June, further improving the company's profitability. The company's gross profit margin is expected to improve month-on-month.
Clarify market/channel/sales expectations in overseas markets.
Zero Run International will start sales in nine European countries starting in September;2024Q4 will further explore the South American market (Brazil & Chile), Asia Pacific (Australia & new Zealand & Thailand & Malaysia & India), Middle East and African markets. Channel level plans to expand in total before the end of this year, including Stellantis
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You Network has 200 sales outlets, including 200 sales outlets, and will expand the sales network to 500 in 2026. The C10+T03 at the model and brand level are the first two models to face globalization, and it is expected that 6 new models will be launched one after another by 27 years. We believe that zero-running advantageous products +Stellantis Group's mature overseas channels/excellent parts/production capacity system can effectively avoid trade uncertainties such as tariffs.
Long-term outlook: Deepen the mainstream market domestically + accelerate the development of overseas light asset operations + explore new businesses for externally supplied parts and components.
1) Take advantage of the overall self-research cost advantage in the Chinese market, adhere to the ultimate product-price ratio line, and deeply cultivate the mainstream market of 100,000 - 250,000 yuan. 2) Cooperate with Stellantis Group on an asset-light basis in overseas markets, and accelerate and expand overseas exports by leveraging Stellantis Group's extensive channel network, after-sales service system and other commercial resources around the world. 3) Achieve external supply of core components and components of the three power companies, enter the supply chain systems of other OEMs, and expand new business growth points.