Key points of investment
In June 2024, Ideal Auto delivered 47,774 new vehicles, a year-on-year increase of 46.7%. 108,581 vehicles were delivered in the second quarter of 2024, up 25.5% year over year. As of June 30, 2024, the cumulative delivery volume of Ideal Auto reached 822,345 units, ranking first in the total number of new Chinese brands delivered. Q2 Under the dual effects of the launch of the new model Ideal L6 and improved store efficiency, Ideal Auto returned to the top of the sales list of new Chinese brands and won the Chinese automobile brand sales championship in the NEV market of 200,000 yuan or more.
In June, Ideal Auto delivered 47,774 new vehicles, a year-on-year increase of 46.7%. Ideal L6 contributed the most to sales in June, contributing more than 40% to Ideal Cars. In terms of channel layout, as of June 30, Ideal Auto has 497 retail centers across the country, covering 148 cities; 421 after-sales maintenance centers and authorized sheet spray centers, covering 220 cities. Ideal Auto has put into use 614 ideal supercharging stations across the country. It has 2,726 charging stations, 485 high-speed ideal supercharging stations, fully connected to the core cities of the four major economic belts, and 129 ideal supercharging stations in the city. The sales potential of the Ideal L Series continued to increase in June. The delivery volume of Ideal L successfully exceeded 20,000 units in June, and the monthly delivery volume of all products exceeded 40,000 units.
Cooperate with Kunlun Grid and continue to iterate intelligently. On a strategic level, the signing ceremony of the cooperation agreement between Kunlun Power Grid and Ideal Auto was held at Ideal Auto's Beijing R&D headquarters to jointly promote the development and construction of charging infrastructure across the country. It is planned that by the end of 2024, more than 2,000 ideal supercharging stations and 10,000 ideal charging stations will be opened at national highways and cities. The coverage rate of core urban areas in Tier 1, 2, and 3 tier 3 cities will exceed 90%, and the mileage coverage rate of national high-speed trunk lines exceeds 70%; the intelligent dimension, Ideal Auto will broadcast the 2024 smart driving summer conference on July 5, 2024. Iterate on the Touchless NOA capability, and Muji NOA will be officially promoted to all AD Max users, so that it can be used all over the country and is easy to use all over the country.
Profit forecast and investment rating: We maintain the company's revenue forecast for 2024-2026 at 1513/2169/273.2 billion yuan, respectively, +22%/+43%/+26% year-on-year, and net profit to mother of 83/13/18.6 billion yuan, respectively; corresponding EPS for 2024-2026 was 3.91/6.14/8.75 yuan, corresponding PE was 18/11/8 times, maintaining the company's “buy” rating.
Risk warning: The recovery in downstream demand for passenger cars fell short of expectations; the price war exceeded expectations.