Incident: Changan Automobile announced sales volume for June. In June, Changan Automobile achieved vehicle sales of 0.225 million vehicles, -0.3% year over year and +8.8% month over month. Among them, Changan's own brand sold 0.189 million vehicles, +2.0% year over month, +10.5% month on month; autonomous passenger car sales were 0.138 million units, +0.1% year over year, and +12.2% month on month. In addition, in June, own-brand overseas sales volume was 0.029 million vehicles, +46.3% YoY, -11.9% month-on-month; own-brand NEV sales volume was 0.064 million vehicles, +60.0% YoY, +15.6% month-on-month. From January to June 2024, Changan Automobile achieved cumulative vehicle sales of 1.334 million vehicles, +9.7% year on year; cumulative sales of its own brand 1.121 million vehicles, +9.9% year on year; cumulative sales of autonomous passenger vehicles of 0.822 million units, +7.0% year on year; overseas sales of its own brand 0.203 million vehicles, +74.9% year on year; and total sales of its own brand new energy vehicles were 0.299 million vehicles, +69.9% year on year.
Deep Blue G318 was officially launched, and deliveries of Deep Blue and Qiyuan both increased month-on-month. 1) Deep Blue delivered 16,659 vehicles in June, +107.2% year over year and +15.9% month on month. On June 13, the Deep Blue G318 was officially launched globally. The two-wheel drive version sold for 0.1759 million yuan to 0.1999 million yuan, and the four-wheel drive version sold for 19.99 to 0.2299 million yuan. The first launch was equipped with Deep Blue Super Range 2.0. It can achieve 1) freedom of use of electricity: 6kW of external discharge power, 3.3 kW of external discharge power in the car, and 12 kW of in-situ parking power generation capacity; 2) freedom of space: 1747L rear seat with trunk space when retracted; 3) Strong driving & crossing ability: equipped with the only comfortable three-piece set of airsuspension+CDC+ active magic carpet in the same class; can achieve zero hundred acceleration 6.3s (four-wheel drive version) and 0-100% torque distribution; equipped with two differential locks and an ET all-terrain system. Deep Blue G318's order performance was impressive, with orders exceeding 0.01 million vehicles in the 70th hour of launch and 14,126 units in 5 days; 2) Changan Qiyuan delivered 15,171 vehicles in June, +11.9% over the previous month, with a total of 72,968 vehicles delivered in the first half of the year.
Avita will launch the first batch of Huawei Qiankun ADS 3.0. In June, Avita will enter the Middle East market. Avita delivered 4,682 units in June, +167.1% year over year and +2.5% month over month. 1) In terms of intelligence, Avita announced that the first batch will be equipped with the Huawei Qiankun ADS 3.0. The ADS 3.0 plan will bring architecture upgrades, safety upgrades, scene upgrades, and parking upgrades. 2) On the export side, in June, Avita officially landed in the Middle East and signed a strategic cooperation agreement with AI Saqer Group, a luxury brand car dealer group in the UAE. The two sides will work together to promote AVITA products into the UAE market, adapt to local conditions, and create a new personalized smart luxury experience.
Profit forecast and investment advice: We maintain the company's profit forecast. We expect the company's net profit to be 8.186, 10.277, and 12.639 billion yuan in 2024-2026, corresponding PE of 16, 13, and 11 times, maintaining a “buy” rating.
Risk warning: Market price competition exceeds expectations, the company's new energy transformation falls short of expectations, the company's intelligent process falls short of expectations, and the company's new car sales volume falls short of expectations.