Event: The company announces sales volume for May 2024. Total sales volume in May was 207,000 units, +3.3% YoY. Total sales in January-May were 1.109 million units, up 12.03% year over year. Independent brands sold 1.71 million units in May, up 4.7% year on year. The total sales volume of our own brands in January-May was 932,000 units, an increase of 11.64% over the previous year. Autonomous passenger cars sold 123,000 units in May, up 1.3% year over year. The total sales volume of autonomous passenger cars in January-May was 684,000 units, up 8.53% year over year. Our own brands sold 33,000 units overseas in May, up 72.9% year on year, and our own brands sold 174,000 units overseas in January-May, up 80.81% year on year.
It became the first batch of L3 intelligent connected vehicle pilot units, and the “Beidou Tianshu” intelligent strategy continued to be implemented: On June 4, Changan Automobile became the first batch of L3 intelligent connected vehicle pilot units in the country.
The SL03i vehicle declared by Changan Automobile this time is equipped with an L3 class traffic jam autonomous driving system (TJP). The system has functions such as dynamic driving task execution, dynamic driving task backup, and human-computer interaction. At the same time, it can also conditionally enable the L3 level autonomous driving mode for traffic congestion scenarios on high-speed and urban expressway sections.
Export sales increased year-on-year, and overseas expansion continued: On June 5, Changan Automobile and the Thailand Investment Promotion Council (BOI) held a special “Sourcing Day” event in Bangkok, Thailand, which attracted more than 300 Thai suppliers to participate. Changan Automobile has reached cooperation agreements with more than 70 suppliers, of which more than 80% are the actual holdings of Taizi. The construction of Changan Automobile's Rayong plant project in Thailand is progressing steadily. It is expected to be officially put into use in the first quarter of 2025, with an initial output of 100,000 units, and the subsequent expansion to 200,000 units; in 2024, it will hire more than 600 local employees, a localization rate of over 80%, and reach 90% by 2026. In the future, Changan Thailand will continue to deepen the concept of localization development and introduce at least 15 new products by 2030.
Investment advice: We expect the company to achieve net profit of 84.34/113.81/15.180 billion yuan in 2024-2026. The corresponding PE was 15.73/11.66/8.74 times, respectively, maintaining the “gain” rating.
Risk warning: Consumer demand falls short of expectations; industry competition intensifies; sales of new models fall short of expectations.