Passenger car sales declined year on year in May, commercial vehicle sales rose year on June 12. JAC released the May production and sales report: the company's total sales volume for May was 34,600 units, down 11.8% year on year. The company's total sales volume in January-May was 173,200 units, down 8.3% year on year.
Passenger car sales declined year on year: in May, the company sold 14,600 units, down 30.9% year on year. Among them, car sales were 0.67 million units, down 0.1% year on year, SUV sales 0.65 million units, down 49.5% year on year, MPV sales 0.13 million units, down 7.5% year on year, and sales of new energy passenger vehicles were 0.27 million units, down 6.0% year on year. In January-May, the company sold 64,600 passenger cars, down 28.7% year on year. Among them, car sales were 27,000 units, down 9.4% year on year, SUV sales were 30,000 units, down 42.1% year on year, MPV sales were 0.73 million units, down 15.4% year on year, and new energy passenger car sales were 11,000 units, up 21.8% year on year.
Commercial vehicle sales increased year on year: the company sold 20,000 commercial vehicles in May, up 10.4% year on year. In January-May, the company sold 109,000 commercial vehicles, up 10.6% year on year.
Cooperate with Huawei to rapidly advance models equipped with the latest Huawei technology. On December 1, 2023, Huawei and JAC signed a “Smart New Energy Vehicle Cooperation Agreement”. The two sides will cooperate comprehensively in various fields such as product development, manufacturing, sales, and service based on Huawei's smart car solutions to focus on building luxury intelligent connected electric vehicles.
On May 20, JAC celebrated its 60th anniversary. JAC officials said that JAC will continue to increase investment in scientific and technological innovation, and that a luxury smart new energy vehicle built in collaboration with Huawei will soon be launched. The JAC high-end NEV base “Gigafactory”, located in the Zhongpai area of Feixi, will be responsible for the production of cooperative models between Jiangqi and Huawei. Currently, the installation of the “Gigafactory” equipment is nearing completion, and sub-system debugging and personnel recruitment are underway.
Profit forecasting
The company's revenue for 2024-2026 is 484.9, 692.0, and 80.71 billion yuan, respectively, and EPS is 0.12, 0.27, and 0.44 yuan respectively. The current stock price is 0.7, 0.5, and 0.4 times PS, respectively. Considering the company's long history, comprehensive business sector, and cooperation with Huawei, it has great potential for future growth and maintains a “buy” investment rating.
Risk warning
(1) The promotion of new models fell short of expectations; (2) automobile consumer demand fell short of expectations; (3) the progress of cooperation with Huawei fell short of expectations.