State-owned background, under BAIC, pioneer in the new energy industry. The company belongs to the BAIC Group and has a state-owned background. It was founded in 2009 and has been working in the new energy industry for 15 years.

The company was listed on the main board through major asset restructuring in 2018, becoming the first NEV stock in China. The company has incubated the ARCFOX Jihu brand and the BEIJING brand, and has cooperated with Huawei to launch the Enjoy World brand through the smart selection model. In addition, the company is also cooperating with companies such as Baidu, Magna, and Ningde Times in various fields, and is continuously expanding its overseas presence in markets such as the UAE, Laos, and Europe.

He took the lead in the early stages and worked hard to develop again after a short period of strategic adjustments. The company topped the list of pure electric vehicle sales in China for 7 consecutive years before 2019, and reached sales of more than 0.15 million units in 2018 and 2019. However, as subsidies for new energy sources continued to decline and market competition intensified, and the impact of the COVID-19 pandemic on the macroeconomy, automobile industry chain, and automobile consumption in 2020, the ToB business, where the company has a large advantage, was also greatly affected, causing the company's sales volume to decline significantly in 2020. In response, the company quickly carried out strategic transformation and product structure adjustments to clarify the positioning of the BEIJING brand and the Jihu brand. The latter also carried the strategic significance of the company's transformation towards the C-side market.

Subsequently, the company set sail again, coinciding with the rapid development of China's new energy vehicles in the C-side market, and the company's sales once again entered a period of growth.

Cooperation with Huawei continues to deepen, and the development of new energy sources continues to accelerate. The company's cooperation with Huawei began in 2017 and continues to deepen cooperation in technology research and development, product innovation, and intelligent transformation. The two sides also jointly established the “1873 Davidson Innovation Laboratory”. In terms of models, the Extreme Fox Alpha T, which was launched in 2020, was equipped with Huawei's technology in the field of intelligence, and the subsequent Extreme Fox Alpha S HI version was launched jointly by the two parties based on the HI model, equipped with Harmony OS in the Hongmeng cockpit and an intelligent driving system based on the Huawei MDC platform. In August 2023, the company announced that cooperation with Huawei will be further deepened to build models based on the smart selection model. The cooperative brand is Enjoy. The first model, the Enjoy S9, was officially launched on August 6, 2024. Huawei is positioned as an incremental component supplier for intelligent connected vehicles. It has advantages in the fields of three electric vehicles, smart cockpits, and intelligent driving. The company's cooperation with Huawei continues to deepen, and Huawei's empowerment is expected to drive the rapid development of the company's new energy business and enter the high-end market.

Profit forecast and investment suggestions: The company's net profit for 2024-2026 is estimated to be -4.097 billion, -1.207 billion, and 0.612 billion, respectively. EPS is -0.74 yuan, -0.22 yuan, and 0.11 yuan, respectively, and PE is--, --, 69.39 times, respectively. Covered for the first time, a “gain” rating was given.

Risk warning: Demand in the NEV industry falls short of expectations, the company's NEV sales fall short of expectations, and market competition intensifies.