Core ideas:

SAIC Zhiji has released its first SUV to enter the large-scale luxury SUV market of intelligent pure electricity. On February 10, 2023, SAIC Zhiji held a new car press conference in Maitreya, Yunnan, and launched the first SUV-- Zhiji LS7, officially entering the large-scale luxury SUV market of intelligent pure electricity.

The release of three original technologies reflects SAIC Zhiji's strong R & D capability. Zhiji LS7 uses the "Star Fall Star Waterfall Ice sense Front Dome" formed by the same kind of forward-looking technology and special manufacturing equipment of the domestic C919 aircraft, the first official mass-produced "YAT cruise half steering wheel" and the original "can rise and fall giant wisdom scene screen", and applies "three-layer silver plating technology" on the vehicle dome windshield for the first time.

Optimize the cockpit space and attach importance to consumer experience. Zhiji LS7 optimizes the cockpit space through three intelligent innovative technologies. The LS7 right cabin is equipped with the longest electric slide rail (1955mm) in SUV history, the world's only "electric full horizontal folding co-driver seat" and the world's first "zero gravity floating seat", which can reach an angle of 121 °.

High configuration of power system + intelligent software and hardware to create industry benchmark models. In terms of power system, Zhiji released medium-high nickel 6-series single crystal high-voltage 100kWh high-energy batteries; in terms of intelligent hardware configuration, Zhiji LS7 was equipped with NVIDIA Corp OrinX ultra-high computing smart driving chip, double lidar, Qualcomm Inc 8155 brain module SoC chip and so on. In terms of intelligent software, SAIC Zhiji has launched a new generation of IM OS 2.0, which integrates intelligence and innovative interaction.

Profit forecast and investment suggestion: as the leading company with the strongest comprehensive strength in the domestic automobile industry, it is taking the core competence building of its own brand as the main starting point, the sustained and rapid landing of major innovative achievements as the driver, and the digital transformation as the support. to achieve simultaneous development of manufacturing and services, and strive to create a new SAIC with more influential brands, more competitive systems and more flexible institutional mechanisms. We estimate that the company's EPS for 22-24 years will be 1.40 EPS 1.70 RMB 1.82 per share respectively. Combined with the company's historical valuation, we will give 14 times PE for 23 years, with a fair value of 23.78 yuan per share, maintaining a "buy" rating.

Risk hints: the prosperity of the industry is declining; the supply of core components is limited; the competition in the industry is intensified.