Cyrus's revenue for the first three quarters of 2024 was 106.627 billion yuan, net profit attributable to mother was 4.038 billion yuan; revenue for the third quarter was 41.582 billion yuan, and net profit to mother was 2.413 billion yuan. Cyrus's business ushered in a period of explosion in 2024. In the third quarter, it was still able to maintain rapid business growth. Revenue for the first three quarters was 106.627 billion yuan, up 539.2% year on year; revenue for the third quarter was 41.582 billion yuan, which continued to increase from month to month. The company turned quarterly profit loss into profit in the first quarter of 2024. In the first three quarters, net profit to mother reached 4.038 billion; in the third quarter, net profit to mother was 2.413 billion, an increase of 71.7% over the previous quarter.

The company maintained a high level of gross profit margin in the third quarter, and the net profit margin further increased. The company is based in the luxury car market, thanks to technical advantages, manufacturing capacity, operation management capabilities and scale effects. After product sales increased, the company maintained a high level of gross margin in the industry, and remained at a high level in the third quarter. The company's gross profit margin for the first three quarters was 25.2%, and the gross profit margin for the third quarter was 25.5%. The company's net profit margin continued to rise. The net profit margin for the first three quarters was 3.8%; the net profit margin for the third quarter was 5.8%, up 3.15 percentage points from the previous quarter.

The company's expense ratio was reduced in the third quarter, the sales expense ratio was effectively controlled, and the R&D expense ratio remained stable.

The company's expense ratio decreased significantly during the third quarter, and the sales expense ratio was effectively controlled. The sales expense ratio for the third quarter was 11.1%, down 4.4 percentage points from the previous month; the Q3 R&D expense ratio was 3.7% and the management expense ratio was 2.5%, which remained stable overall.

The QJ model sold 0.2925 million units in the first three quarters and 0.1104 million units in the third quarter. The company's core product series of models sold 0.2925 million units in the first three quarters; sales in the third quarter were 0.1104 million units, up 11.8% from the previous quarter. The M9 sold 49,330 units in the third quarter, accounting for 44.7%; the M7 sold 44,901 units in the third quarter, up 21.3% from the previous quarter; and the M5 sold 4195 units in the third quarter, up 75.6% from the previous quarter.

Cycle revenue and bicycle gross profit remained at a high level in the third quarter, and bicycle net profit increased sharply. The company's third-quarter bicycle revenue was 0.3767 million yuan, bicycle gross profit 0.0962 million yuan, and bicycle net profit 0.0219 million yuan (Q2 bicycle revenue/bicycle gross profit/bicycle net profit was 0.3896/0.107/0.0142 million yuan, respectively).

Risk warning: Product sales are lower than expected; competition in the luxury car market is intensifying.

Investment advice: Raise profit forecasts and maintain the “better than the market” rating.

The estimated revenue for 2024-2026 is 148.4/170.7/193.6 billion yuan (the original forecast was 125.1/178.2/214 billion yuan), net profit to mother is 6.026/10.376/13.184 billion yuan (the original forecast was 3.24/6.04/8.3 billion yuan), EPS is 3.99/6.87/8.73 yuan, and the current stock price corresponds to 2024-2026 PE 28.5/16.6/ 13.0 times. The company's products are currently the benchmark products in the domestic luxury car sector. The luxury car track has both a high moat and high gross profit. As a benchmark car company in the luxury car sector, the company should have a certain valuation premium. The company was given 19-21 times PE in 2025, corresponding to a stock price of 130.56-144.30 yuan, maintaining a “superior to the market” rating.