CIMC Vehicle is the world's leading high-end manufacturer of semi-trailers and special vehicles, a pioneer in the high-quality development of road transport equipment in China, and an explorer and innovator in the field of new energy special vehicles in China.
CIMC Vehicle Qiangguan Business Group actively innovated products, launched new products such as the omnipotent gyroscope tank research and development, and launched integrated product development for new energy head-mounted trains. At the same time, it also provided integrated solutions through the “Good Car with Good Tank” model. The 2023 performance was strong, with revenue reaching 4.908 billion yuan, an increase of 35% over the previous year, and a significant increase of 31% in sales. Among them, the sales volume of concrete mixers has been number one in the country for seven consecutive years, and has maintained a leading position in the global tanker market.
The advantages of CIMC's Ruijiang concrete mixers include: environmentally friendly power: the chassis and top are all driven by pure electric power, dual electric double drive, zero emissions, no pollution, and low noise. Product compliance: Innovative lightweight technology has been used extensively in the matching design of the vehicle. Economical use: The power system chose the technical route of direct drive motor and upper drive motor separately. The most economical choice was the upper drive power. The upper motor can operate independently, effectively reducing electricity consumption while waiting for loading and unloading, and is also equipped with a braking energy recovery system, which extends the vehicle's driving range.
The company operates steadily and reserves the next growth point. According to the company's official website, CIMC Motor achieved revenue of 25.087 billion yuan in 2023, an increase of 6.21% over the previous year; achieved net profit attributable to shareholders of listed companies of 2,456 billion yuan, a significant increase of 119.66% over the previous year; and realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 1,553 billion yuan, a sharp increase of 69.68% over the previous year, a record high.
Recently, domestic sales of new energy heavy trucks have increased rapidly. In May 2024, the domestic NEV heavy truck market sold a total of 5196 vehicles, an increase of 13% over April and a year-on-year increase of 174%. From January to May 2024, domestic sales of new energy vehicles and heavy trucks totaled 20,700 units, an increase of 139% over the previous year. The new energy penetration rate of terminal sales in the heavy truck market reached 9.9% in May, an increase over the previous month; from January to May 2024, the penetration rate of new energy reached 8.21%, a significant increase from 5.58% in 2023.
We believe that in the last cycle, CIMC has become the world's leading high-end manufacturer of semi-trailers and special vehicles. In the future, it is expected to benefit from the development of domestic new energy commercial vehicle vehicles and carriages.
We expect the company to achieve revenue of 259/282/34 billion yuan in 2024/25/26, net profit to mother of 1,451/17.36/1.96 billion yuan, and EPS of 0.77/0.93/1.05 yuan, corresponding to the closing valuation of 12/10/9x PE on June 18, 2024. Referring to comparable companies, we believe that CIMC vehicles, as the industry leader, had a reasonable valuation of 14-16x PE in 2024, corresponding to a reasonable value range of 10.84-12.38 yuan, maintaining a “superior to the market” rating.
Risk warning: Global economic growth falls short of expectations, and raw material prices have risen sharply.