Description of the event
Ideal Auto sold 35,000 units in May 2024, up 23.8% year on year and 35.8% month on month.
Incident comments
Ideal sold more than 35,000 units in March 2024, and the cumulative delivery of Ideal L6 exceeded 15,000 units. The ideal sales volume for May 2024 was 35,020 vehicles, up 23.8% year on year and 35.8% month on month. The cumulative sales volume for January-May was 1.41 million units, an increase of 32.5% over the previous year. Among them, Ideal's cumulative sales volume in April-May reached 61,000 units. According to Ideal's 2024 quarterly report's performance forecast, the 2024Q2 sales target is 105-110,000 units. Ideal's sales target for June is 44,000-40.000 units, an increase of 26.2%-40.5% over the previous month. The performance of the new Ideal L6 is strong. As of May 31, the cumulative delivery of the Ideal L6 has exceeded 15,000 units, and the 20,000 mass-produced car has also been discontinued. The production capacity is expected to exceed 20,000 units/month in June. The rapid rise in production of new cars will help the company achieve sales targets for the second quarter. According to weekly data, with the launch of Ideal L6, Ideal Weekly sales continued to rise. Sales volume in the first week (4.29-5.5) was 0.53 million units, and sales climbed to 0.86 million units in the fourth week (5.20-5.26).
The “Dual Energy Strategy” was officially launched. The electric platform complements energy types, and intelligent technology enhances the user experience. 1) Electricity: On March 1, Ideal 5C supercharging piles were officially put into use. All pure electric models launched this year will be equipped with 5C high voltage charging as standard. As of May 31, 2024, 426 ideal supercharging stations have been put into use, an increase of 40 over the previous month, with 1,888 charging stations, an increase of 210 over the previous month. Looking forward to the future, Ideal plans to invest 6 billion yuan. By the end of 2024, it plans to build a total of 2,000 overcharging stations, and plans to build more than 5,000 overcharging stations in the future. 2) Intelligence: Intelligent driving in urban areas will soon be opened to the whole country, and the OTA 5.2 version will be released in the first half of this year to upgrade various functions of full-scene intelligent driving, full-scene assisted driving, intelligent parking, and active safety.
Ideal Auto has clear plans for subsequent models, continuous layout of direct sales channels, and broad scope for future sales. Currently, there are 4 extended-range SUVs on the extended-range platform. The ideal MEGA and 2024 L series models will be officially released at the spring press conference on March 1. By the end of 2024, the product layout of “4 extended-range electric models+1 high-voltage pure electric model” will be formed. The product matrix covers more than 200,000 markets to meet a wider range of consumer needs. At the same time, the ideal channel structure continues to be optimized and the number continues to increase. By the end of May 2024, Ideal Auto had 487 retail centers across the country, covering 144 cities, an increase of 6 compared to the end of last month; 374 after-sales maintenance centers and authorized sheet spray centers, covering 214 cities, an increase of 13 compared to the end of last month. Looking ahead to this year, the ideal sales and service network will continue to be upgraded. It is planned to increase the number of retail centers to 800 by the end of this year, and the number of after-sales service centers and authorized sheet spray centers is expected to exceed 500.
As the pioneer of the household SUV concept, Ideal Auto's product advantages and brand design are deeply rooted in the hearts of the people, and the “Dual Energy Strategy” is expected to further expand the advantages of Ideal Auto. Subsequent new models will be launched one after another to further improve the ideal product matrix and increase the ideal overall sales space. The combined scale effect of high bicycle sales prices is expected to maintain a good profit level. The ideal sales volume is expected to reach 560,000 units (neutral) in 2024, maintaining a “buy” rating.
Risk warning
1. The global economic recovery was weaker than expected;
2. Increased competition in the industry weakens corporate profits.