Incident: The company announced sales volume for September. The company's total sales volume was 0.313 million vehicles, a year-on-year decrease of 35.03%.

New energy vehicle sales are rising steadily: In September, SAIC Motor sold 0.129 million new energy vehicles, up 38.26% year on year, accounting for 41.28%, and the NEV market continued to gain strength. In January-September of this year, SAIC Motor delivered a total of 0.886 million new energy vehicles, an increase of 29.5% over the previous year. Among them, the number of Zhiji Auto terminals delivered more than 4,500 vehicles, an increase of more than 150% over the previous year.

Accelerate overseas market expansion: January-September of this year. SAIC Motor Group's overseas market terminal deliveries reached 0.806 million vehicles, an increase of 5.5% year on year; SAIC MG has delivered more than 0.18 million vehicles in the European market, and sales have maintained positive year-on-year growth. In September, the global sales volume of the MG ZS, the main overseas model, surpassed 0.7 million units, and was a stable “Chinese Auto Overseas Single Product Champion” in Spain, Australia and other countries. The technical indicators of the new MG3HEV are fully ahead of Japanese competitors, and have already emerged in the European A-class car segment and are accelerating the rise in sales.

Investment advice: We expect the company to achieve net profit of 10.976/11.997/12.081 billion yuan in 2024-2026, corresponding PE of 14.42/13.19/13.10 times, respectively, to maintain an “increase in holdings” rating.

Risk warning: New product launch progress falls short of expectations; industry competition intensifies; smart driving technology implementation process falls short of expectations.