Event: The company released sales data for November 2023. The total sales volume in November was 63,000 units, up 125.3% year on year, and achieved sales volume of 566,000 units in January-November, up 33.5% year on year.
Sales of medium and heavy trucks and light trucks both increased year on year: in November, the company achieved sales volume of 9,157 medium and heavy trucks, an increase of 62.59% over the previous year. Auman heavy truck achieved sales volume of 6042 units, an increase of 112.2% year on year. Among them, sales of gas vehicles were 2,318 units, up 8178.6% year on year. The popularity of gas vehicles led to a high year-on-year increase in Auman heavy truck sales volume. In November, the company achieved sales volume of 49,000 light trucks, an increase of 158.15% over the previous year. In terms of engines: In November, the company's total engine sales volume was 27,000 units, up 71.67% year on year; of these, Foton Cummins engine sales were 18,000 units, up 80.88% year on year. The high year-on-year increase in the company's vehicle sales volume led to a high year-on-year increase in engine sales.
The export market and sales volume of new energy models increased year on year: in November, the company achieved overseas sales of 15,573 vehicles, an increase of 121.1% year on year, and overseas demand for commercial vehicles continued to rise. The company achieved sales volume of 4,500 new energy vehicles in November, an increase of 88.68% over the previous year. The company's overseas business unswervingly implements a global strategy, improves product layout, achieves competitive growth in infrastructure businesses such as light trucks, microcards, times, and VAN, breaks through strategic business for medium and heavy trucks and pickups; comprehensively lays out new energy business, builds new energy business system capabilities, and breaks through developed markets.
Investment suggestion: We expect the company to achieve net profit of 1,082/18.72/2,651 billion yuan from 2023-2025. The corresponding PE was 21.68/12.52/8.85 times respectively, covering it for the first time and giving it an “increase in holdings” rating.
Risk warning: Industry competition is increasing risk, overseas demand falls short of expectations, and macroeconomics falls short of expectations.