Report summary:

Jiangling Motors is an established automobile company. The company's light commercial vehicle business is basically stable, and new passenger car products are about to be released, relying on Ford's export business to become a new growth point. On June 16, 1992, the company was reorganized and established as a Sino-foreign joint venture joint stock enterprise based on the Jiangxi Automobile Factory. Listed on the Shenzhen Stock Exchange on December 1, 1993. The main business is the production and sale of automobile assemblies and other parts such as automobiles, engines, chassis, etc., and the provision of related after-sales services; as a dealer of Ford Motor (China) Co., Ltd., it engages in the retail and wholesale of cars of the above brands; and the import and export of automobiles and parts of automobiles and parts.

Deepen export cooperation with Ford, and SUV exports drive revenue growth. The company attaches great importance to overseas business development and signed a cooperation framework agreement with Ford in May to expand export sales. The company exported 50,980 SUVs from 23Q1-3, of which the main export product is the SUV Lingrui. Relying on Ford's mature overseas sales system, the car has successfully opened up markets in South America, Southeast Asia and the Middle East. It is estimated that the annual export volume of this model will reach more than 70,000 units. Next year, with the export of the right-hand drive model of this car, sales volume is expected to increase further. More Ford products will be exported overseas in the future.

The commercial vehicle business is picking up, and new energy products have been launched one after another. As the absolute leader in the past 3 young passenger industries, the company launched the new Ford Transit T8 series products on October 15, including passenger version, logistics version, and pure electric version. A total of nearly 100 models with configurations have been launched, and its position in the industry is expected to be stabilized. On the pickup truck business side, the company successively launched the Road Explorer, Light Chaser, and Almighty series this year, and launched the new Yuhu 7 series pickup truck in September. The pickup truck business is expected to pick up again with the release of new products. On the light truck business side, the company launched the Jiangling Lexing New Energy brand in June of this year. Its new pure electric platform, the light truck Jiangling Lexing E-Luda, was officially listed, and the light truck new energy business is expected to become a new growth point for the company.

Build a vertical and horizontal Ford system and move to a personalized market. The company officially unveiled the Ford Ranger pickup on August 25 at the Chengdu Auto Show. The star model among hardcore off-road vehicles, the Ford Bronco, was also unveiled at the Shanghai Auto Show and will be officially launched in the first half of next year. On October 9 this year, Ford's world's first Ford Beyond was grandly opened in Chongqing. Jiangling and Ford will work with Ford to build more than 200 Ford Zongheng stores across the country to sell models such as the Ford Ranger, F-150, and Bronco. We believe the new Ford product line is expected to further improve the company's profitability.

Investment suggestion: The company is expected to achieve net profit of 1,243/11.83/1,376 billion yuan from 2023-2025, corresponding to PE 12.02/12.63/10.86 times. First coverage, giving a “buy” rating.

Risk warning: exports fall short of expectations; raw material prices fluctuate; sales of new models fall short of expectations.