Incident: The company issued a sales announcement for May. The company's total sales volume in May was 34,600 vehicles, a year-on-year decrease of 11.83%.
Total sales in January-May were 173,000 units, down 8.27% year on year.
Passenger car sales were under pressure. Commercial vehicle sales increased year on year: the company sold 14,600 passenger cars in May, down 30.93% year on year; passenger car sales in January-May were 64,600 units, down 28.71% year on year.
Among them, sales of new energy passenger vehicles in May were 2,683 units, down 5.96% year on year. Sales of new energy passenger vehicles in January-May were 10,700 units, up 21.75% year on year. In May, the company's commercial vehicle sales volume was 20,000 units, up 10.42% year on year. From January to May, the company's commercial vehicle sales volume was 109,000 units, up 10.6% year on year.
Cooperation with Huawei continues to deepen and enhance product competitiveness: 1) On March 1, 2024, the Anhui Provincial Department of Ecology and Environment published the “Environmental Impact Report on the Construction Project of Jianghuai to Produce 200,000 High-End Intelligent Pure Electric Passenger Vehicles per Year”. According to the “Report”, JAC's construction project with an annual output of 200,000 vehicles of mid-range and high-end intelligent pure electric passenger vehicles is environmentally viable. The project products are mainly medium and large pure electric DE and X6 platform products. Among them, the X6 pure electric platform is a luxury new energy platform, empowered by Huawei's intelligent technology, covering medium to large MPV models, and actively seizing the domestic high-end market. 2) On March 26, 2024, the company signed a memorandum of cooperation with Huawei Terminal Co., Ltd. to jointly promote the construction of the Hongmeng ecosystem and enable smart mobility; 3) On April 24, 2024, the company signed a comprehensive strategic cooperation agreement with Huawei Digital Energy to accelerate the promotion of vehicles, aircraft, and charging. The company's cooperation with Huawei continues to deepen, which is expected to enhance product competitiveness.
Investment advice: We expect the company to achieve net profit of 4.38/6.51/867 million yuan in 2024-2026, corresponding PE of 78.92/53.10/39.83 times, respectively, to maintain the “increase in holdings” rating.
Risk warning: New product launch progress falls short of expectations; overseas competition intensifies; terminal consumer demand is insufficient.