Incident: On August 20, 2024, the company announced its results for the first half of 2024. In the first half of 2024, the company achieved operating income of 14.66 billion yuan, +61.16% year-on-year, and net profit of -2.653 billion yuan, an improvement over -5.142 billion yuan in the same period last year. Among them, 2024Q2 achieved operating income of 8.111 billion yuan, +60.22% year-on-year, +23.87% month-on-month, and net profit of -1.285 billion yuan, an improvement over -2.805 billion yuan in the same period last year.
Automobile sales in the first half of the year were +25% year-on-year, and Volkswagen cooperated to expand new revenue horizons. Automobile sales: In the first half of 2024, the company achieved automobile sales revenue of 12.363 billion yuan, +55.74% year-on-year. Among them, 2024Q2 achieved automobile sales revenue of 6.819 billion yuan, +54.10% year-on-year and +23.00% month-on-month. The company achieved automobile sales of 0.052 million vehicles in the first half of 2024, +25.5% year-on-year. Among them, 2024Q2 achieved automobile sales of 0.0302 million vehicles, +30.20% year over year and +38.43% month over month. Furthermore, in July 2024, the company delivered 0.0111 million vehicles in a single month, with a cumulative total of about 0.0632 million vehicles delivered in January-July 2024. Services and others: In the first half of 2024, the company achieved service and other revenue of 2.296 billion yuan, +98.27% year-on-year. Among them, 2024Q2 achieved 1.293 billion yuan in service and other revenue, +102.66% year over year, and +28.78% month over month. The increase in service and other revenue is mainly due to the increase in maintenance service revenue in line with the increase in automobile sales and the increase in sales revenue from technology research and development services brought about by cooperation with the Volkswagen Group.
The profit situation has gradually improved, and profitability has increased significantly. In terms of deducting non-net profit, in the first half of 2024, the company achieved deduction of non-net profit of -2.628 billion yuan, which is a significant improvement over -5.15 billion yuan in the same period last year.
In terms of gross margin, in the first half of 2024, the company's comprehensive gross margin was 13.50%, an increase of 14.93pcts compared to -1.43% in the same period last year. Among them, the company's gross margin of automobile sales in the first half of 2024 was 5.96%, an increase of 11.52 pcts compared with -5.56% in the same period last year.
A strong product cycle is poised to start, which is expected to drive both revenue and sales. Product News: Xiaopeng MONAM03 is scheduled to be launched at the end of August, and P7+ is expected to debut in 2024Q4. The company's 24 semi-annual report revealed that new products will be released repeatedly and facelifted over the next three years. Performance outlook: 2024Q3's delivery target is 4.1 to 0.045 million vehicles, +2.5% to 12.5% year over year, and expected revenue of 91.0 to 9.8 billion yuan, or +6.7% to 14.9% year over year.
Investment advice: We expect the company to achieve revenue of 50.244/82.182/123.648 billion yuan in 2024-2026, net profit to mother of -6.013/-4.488/0.951 billion yuan, and EPS of -3.17/-2.37/0.50 yuan respectively, maintaining the “recommended” rating.
Risk warning: New product launches fall short of expectations; the penetration rate of the new energy market falls short of expectations; competition in the automotive industry intensifies, etc.