Event: The company announced sales volume for February 2024. The number of Zeros delivered in February reached 6,566 units, an increase of 105.3% over the previous year. More than 45,000 orders have been placed for the new model Zero Sport C10.
With the launch of the Zero Sport C10 and 3 24-year models, a variety of cost-effective models are expected to drive continued sales growth: On March 2, Zero Sport's new model, the C10, and 24 models of the 3 existing models will be launched simultaneously. Among them, the C10 is the company's new model, with a price range of 128,800 to 168,800. Includes 4 pure electric models and 3 extended-range models. In addition, the 2024 Zero Sport C11, Zero Sport C01, and Zero Sport T03 were also launched. The price ranges were 14.88-205,800 yuan, 13.68-158,800 yuan, and 49,900 to 69,900 yuan, respectively. Among them, the C11 and C01 have both upgraded the Clover architecture and the Qualcomm 8295 chip, while the T03 has improved its configuration. The company has always “insisted on self-research on core technology throughout the world and insisted on creating high-quality products”. We believe that the launch of the company's new models is expected to continue to expand sales within the 200,000 price range and open up room for growth.
The overseas layout is advancing at an accelerated pace, and the European market is expected to be the first to break through: the company's global capabilities have been recognized by well-known institutions. Recently, the results of the first Forbes China Global Brands TOP30 were unveiled. The company became the only selected brand among the new car builders, demonstrating the company's leading technical strength and strong market influence. As the company's first global model, the Zero Run C10 is scheduled to enter the European market in the third quarter of 2024, helping the company achieve a global layout.
Investment advice: We expect the company to achieve net profit attributable to mother in 2023-2025 of -49.63/-24.22/2,406 billion yuan, corresponding to a 12.57 times PE in 2025, maintaining an “increase” rating.
Risk warning: Product sales fall short of expectations, risk of macroeconomic fluctuations, overseas progress falls short of expectations.