Event: The company publishes its 2023 annual report. In 2023, the company achieved total operating income of 744.705 billion yuan, a year-on-year increase of 0.09%; realized net profit attributable to shareholders of listed companies of 14.106 billion yuan, a year-on-year decrease of 12.48%; and realized net profit without deduction of 10.045 billion yuan, an increase of 11.7% over the previous year. It is proposed to distribute a cash dividend of 3.69 yuan (tax included) for every 10 shares, for a total of 4.23 billion yuan (tax included).
Focus on optimizing the production and marketing structure, and its own brands continue to grow: According to the company's official account, SAIC sold 5,021 million vehicles in 2023, ranking first in the country; among them, self-branded vehicles sold 2.775,000 units, accounting for more than 55% of the company's sales volume, an increase of 2.5 percentage points over 2022; NEV sales continued to rank first in the global NEV sales segment; overseas markets sold 1.208 million vehicles. According to China Automobile Association data, the company has maintained the first place in the domestic vehicle export industry for 8 consecutive years. At the same time, SAIC Motor is focusing on optimizing the production and sales structure. In 2023, sales of new energy passenger vehicles over 150,000 yuan accounted for 43.6%, an increase of 19.2 percentage points over 2022. The company's sales target for 2024 is 5.45 million units, an increase of 8.5% over the previous year.
Attack the core technology of smart electricity and establish new advantages: 1) In terms of power, the quasi-900V silicon carbide platform with higher torque, more power, and higher speed has already been implemented on the Zhiji LS6. SAIC's pure electric vehicle will enter the “2-second acceleration club” this year; the upcoming Zhiji L6 will be the first to be equipped with industry-leading semi-solid state batteries, which increase energy density by more than 50%, reduce battery cost by more than 10%, and have safer and more reliable performance. 2) In terms of smart chassis, SAIC Motor pioneered the vehicle central collaborative motion control platform (VMC), opening a new era of digital chassis for smart cars, enabling vehicles to maintain stable body stability at all times under different driving modes and complex road conditions; innovative functions such as wire-controlled steering and crab movement were the first to be mass-produced and launched on the Zhiji L6. 3) In terms of intelligent driving, starting in 2024, SAIC Zero Galaxy's full-stack 3.0 smart car solution will be implemented step by step. The full-stack electronic architecture uses the “central computing+regional control” concept of an intelligent human-like structure to create a “central brain” for smart electric vehicles. The new product will reduce the number of controllers in half, increase data bandwidth by 5 times, reduce wire length by 30%, and increase OTA speed by 70% through domain fusion technology.
Investment advice: We expect the company to achieve operating income of 7785.46/8158.72/854.692 billion yuan in 2024-2026, and net profit to mother of 161.34/174.76/18.70 billion yuan. The corresponding PE was 10.97/10.13/9.79 times, respectively, maintaining the “gain” rating.
Risk warning: New car sales fall short of expectations; macroeconomic downside risk; industry competition increases risk.