Incident: On June 13, Deep Blue's new hardcore SUV Deep Blue G318 went on sale. The price was 175,900 yuan for the two-wheel drive standard version; 185,900 yuan for the two-wheel drive comfort version; 199,900 yuan for the two-wheel drive air suspension version; 199,900 yuan for the four-wheel drive comfort version; 229,900 yuan for the four-wheel drive air suspension version; and 318 million yuan for the worry-free crossing version. Among them, the two-wheel drive standard version has a pure electric battery life of 100 km and will be delivered in August this year. Orders for the new car exceeded 3,000 units within 60 minutes of launch.
Kecheng Kano has excellent performance, and G318 has full potential to be popular. In terms of body size, the Deep Blue G318 is 5010x1985x1960mm in length, width and height, 2880mm, and has a high “housing rate”; in terms of power, the Deep Blue G318 is equipped with Deep Blue Super Range 2.0, a two-wheel drive standard/ comfortable/suspension version with a pure electric battery life of 100/190/184 km respectively, with a feed fuel consumption of 6.7L; in terms of cabin configuration, the new car is equipped with aerospace-grade ergonomic front seats and supports front row seats. Ventilation and heating, when the rear seat is reclined It can form a 1.8-meter large bed; in terms of off-road performance, the dark blue G318 is equipped with a front double wish+rear five-link independent suspension, equipped with a luxury R-EPS steering system; air suspension+CDC+ active magic carpet, which has the highest battery pack clearance of 348mm, which can achieve in-situ steering function, improve passability under complex road conditions, and can easily handle wading, snow, rugged, dirt, and sand; in terms of intelligent driving, the dark blue G318 is equipped with an L2 class intelligent driving+active safety system to support smart cruising and yawning Movement, lane centering, intelligent speed limit, parallel Assistance and AEB emergency braking improve driving safety; in addition, for outdoor travel, the G318 provides 3.3 kW of external discharge power inside the car and 6 kW of external discharge power to ensure outdoor electricity use; it has towing qualifications and is equipped with luggage rack PLUS and 1.6T tow hooks to support all kinds of outdoor equipment.
The G318 has strong price competitiveness to reshape the hardcore SUV pattern. In the early stages, due to factors of high prices and high fuel consumption, the hardcore off-road market was mainly dominated by high-priced imported models (Land Rover, Mercedes-Benz G, Toyota Prado); domestic car prices were mostly concentrated at 250,000 yuan, and the overall market size in 2023 was only 200,000 vehicles. The Deep Blue G318 is highly competitive in price. As a hardcore SUV of around 200,000, it will fill the gap in the market, and the G318 has strong hardware configuration, superior mechanical quality and off-road capability. At the same time, the fuel consumption is 6-7L. Compared with traditional fuel, the off-road fuel economy is significantly improved. Kecheng Kano is expected to open up the blue ocean market and reshape the hardcore SUV pattern.
Autonomous new energy sources accelerate growth, and the profit inflection point of new energy sources can be expected. In May, the company's independent NEV wholesale sales volume was 54,000 units, with cumulative wholesale sales volume of 235,000 units in January-May, +72.7%; of these, Deep Blue sold 14,000 units in May, and cumulative sales volume of 67,000 units in January-May, +125.0% year-on-year. With Deep Blue's export volume and G318 listing, we are optimistic about Deep Blue's overall sales volume and ASP increase, and NEV profits can be expected at an inflection point.
Investment advice: We are optimistic about the company's electric intelligence transformation, combined with the intelligent power of Huawei to maintain profit forecasts. We expect revenue for 2024-2026 to be 1,830/2,086/234.6 billion yuan respectively, net profit to mother of 80.1/105.0/13.45 billion yuan, and EPS of 0.81/1.06/1.36 yuan respectively, corresponding to the closing price of 13.37 yuan/share on June 13, 2024. PE is 17/13/10 times, respectively, maintaining the “recommended” rating.
Risk warning: Cooperation with Huawei fell short of expectations; sales of independent brands fell short of expectations; delivery of autonomous new energy models fell short of expectations; and the “price war” in the industry intensified.