The L6 is intelligent, comfortable, and highly equipped. It is expected to sell 15,000 to 20,000 units per month, maintaining the “buy” rating of the ideal L6, a luxury medium and large SUV, with a price of 24.98-279,800 yuan. Compared with competing M7 Smart Driving Edition/Mercedes-Benz GLC/BMW X3, etc., it has a cost-effective advantage. Smart driving and smart cabin configurations are high. We are optimistic that after the L6 is launched, the company's sales will reach a new level. The company is expected to sell 60/85/1.11 million vehicles in 24-26, with revenue of 1755/ 2368/294.2 billion yuan respectively, and net profit to mother of 142/185/25.2 billion yuan, respectively. Tesla, Geely Auto, and BYD were selected as comparable companies, and the target price of the company was fine-tuned to HK$170.14 (previously HK$177.53), giving the company 23 x PE in 24, an average of 2024E 23 x PE, and maintaining a “buy” rating.
As a family car, the L6 has a large interior space, and the extended electric mileage of the L6 has a length/width/height/wheelbase of 4925/1960/1735/2920mm respectively. It is a luxury medium to large SUV.
Looking at the internal space, the first row of seats and steering wheel are powerful. The second row has a maximum leg space of 1,135 mm, a head space of 968 mm, and is fully equipped with an electric three-person sofa, panoramic canopy, independent air conditioning, compressor refrigerator, silent cabin, and top audio. The trunk is more than 1 meter deep, and can be retracted electrically with one click to turn it into a super large bed. In terms of battery life, the L6's CLTC has a comprehensive battery life of 1,390 km and a pure electric battery life of 212 km. The new-generation lithium iron phosphate battery uses a newly developed next-generation high-energy density lithium iron battery, which takes into account high power performance and is equipped with a heat pump system. The winter battery life is comparable to that of a ternary lithium battery.
Smart driving+CDC sports suspensions are safer and more comfortable. The smart era AD Pro 3.0, which leads four-screen interaction in the cabin, can achieve high-speed NOA, urban LCC, and smart parking in complex parking spaces; AD Max 3.0 can enable high-speed NOA toll gate traffic, urban LCC chauffeur command, and urban NOA will gradually open up all road sections across the country. All L6 models are equipped with four-wheel drive as standard to enhance power and safety. The L6 comes standard with a CDC sports suspension. The front double wishbone and rear five-link suspension balance control and comfort. The L6 is equipped with 9 airbags as standard, which meet the latest C-NCAP five-star and China Insurance Research Institute collision G+ standard operating conditions requirements. AEB has a strong emergency braking function, and AD Max/AD Pro can achieve 120/80km/h emergency braking, respectively.
The company pioneered the use of a four-screen interaction composed of a central control screen, a co-driver's entertainment screen, a safe driving interaction screen, and a HUD. The front row has two large 15.7-inch 3K screens, with pixels reaching the level of a “retina screen”, and the HUD is high-definition intelligence.
Compared to competitors' M7/GLC/X3, we expect monthly sales of L6 to reach a price of 249,800 L6 Pro units at 249,800 yuan, L6 Max at 279,800 yuan. The limited-time benefits end at 24:00 on May 5, with a total value of 20,000 yuan. Delivery of Ideal L6 is expected to begin in late April, around 2,000 units are expected to be delivered in April, and mass delivery will begin in May. The L6 Pro version has advantages over the main competitor M7Plus rear drive version/BMW X1/Mercedes-Benz GLA/BMW X3/Mercedes-Benz GLC in terms of dynamics, range, overall fuel consumption, suspension configuration, number and size of screens, cockpit chips, auxiliary driving configurations and functions. Compared with competitors' monthly sales in the past year, combined with L6 product strength, we expect monthly sales of the L6 to reach 15,000 to 20,000 vehicles.
Risk warning: macroeconomic downturn, weak consumer demand, supply chain shortages, etc.