Incident: The company issued a sales announcement for December. The total sales volume of the company was 607,000 vehicles, an increase of 18.75% over the previous year.
New energy models sold 219,000 units, accounting for 34.44% of sales, up 53.16% year on year; export and overseas bases sold 1.41 million units, accounting for 23.23% of sales volume, up 5.36% year on year. Sales at major branches: SAIC Volkswagen sold 143,000 vehicles, up 17.41% year on year. SAIC-GM sold 105,000 units, up 11.21% year over year. SAIC sold 137,000 passenger cars, up 57.54% year over year. SAIC-GM-Wuling sold 202,000 units, up 4.16% year on year.
New energy vehicle sales reached a record high, and joint venture brands gradually gained strength: the company's NEV sales reached a record high in December, reaching 219,000 units, with total sales of 1.123 million units throughout the year, ranking second among Chinese car companies. Among them, in terms of independent brands, Zhiji Auto's monthly sales volume exceeded 10,000 for the first time in December; in terms of joint venture brands, SAIC Volkswagen sold more than 20,000 new energy vehicles in December, an increase of about 134% over the previous year, ranking first in the joint venture pure electric model list. In addition, Zhiji Auto also officially obtained the Shanghai Expressway Autonomous Driving Test License in December. The city NOA is also expected to begin public testing in Shanghai at the end of 23, and the pilot version of the urban commuting model will be launched in 24.
The leading position in overseas markets is stable, and the global layout continues to advance: SAIC Motor's overseas sales volume reached 1.208 million vehicles in 2023, an increase of 18.8% over the previous year, leading the Chinese automobile industry for eight consecutive years. Among them, independent brands account for nearly 92% of sales, and new energy vehicles account for nearly 24% of sales. SAIC Motor's MG4 EV, the “first global vehicle” based on the Nebula platform's exclusive pure electric serial platform, has landed in more than 80 countries on six continents. The company's overseas layout continues to advance.
Investment advice: We expect the company to achieve net profit of 149.91/164.80/18.473 billion yuan in 2023-2025, corresponding PE of 10.39/9.45/8.43 times, respectively, to maintain the “increase in holdings” rating.
Risk warning: New product launch progress falls short of expectations; industry competition intensifies; smart driving technology implementation process falls short of expectations.