Event Overview: The company released its January production and sales flash report: Group wholesale sales in January totaled 134,700 vehicles, down 51.14% year-on-year and 47.14% month-on-month; independent brand wholesale sales reached 100,100 vehicles, down 58.46% year-on-year and 51.82% month-on-month; new energy vehicle wholesale sales in January were 36,600 vehicles, down 45.74% year-on-year and 68.18% month-on-month.
Wholesale sales of self‑branded vehicles and wholesale sales of new energy vehicles both declined year-on-year. In January, the company’s wholesale sales of self‑branded vehicles reached 100,110 units, down -58.46% year-on-year; on the new energy front, the company’s wholesale sales of new energy vehicles in January totaled 36,621 units, a year‑on‑year decrease of -45.74%. In terms of models, as of January, the Deepal S05 had accumulated sales exceeding 170,000 units, with average monthly sales surpassing 10,000 since its launch; the Changan Qiyuan A06 had delivered a total of 21,460 units, setting a new record for delivery speed among medium‑sized new energy sedans under state‑owned enterprises. Looking ahead to 2026, the group’s sales target is 3.3 million vehicles, with a new energy vehicle sales target of 1.4 million and an overseas market target of 750,000 vehicles. The company’s brand‑new products, including the Deepal Intelligent Sport Sedan L06 and the Qiyuan A06, have officially been launched, accelerating its electrification transformation and overseas market expansion.
Core brand technology is undergoing accelerated iteration, continuously strengthening its intelligent competitiveness. The Deepal brand has secured the first batch of official L3‑level autonomous driving license plates, marking a pivotal breakthrough in transitioning autonomous driving from testing to compliant commercial deployment. The Deepal S09 has completed an OTA upgrade that optimizes the HarmonyOS cockpit experience, and the brand will soon launch the L06 smart coupe, equipped with 3‑nm automotive‑grade chips and LiDAR, further solidifying its technological moat in the realm of intelligent mobility. Avatr is simultaneously advancing technological upgrades and pursuing global expansion: the right‑hand drive Avatr 07 has been shipped to Thailand, officially entering the high‑end Southeast Asian market. The 2026 Avatr 07 will be powered by Huawei’s Qiankun ADS 4 and the HarmonyOS cockpit, delivering a continuously evolving intelligent experience. At the same time, Avatr is deepening its joint R&D efforts with Bowers & Wilkins, leveraging a “mobile laboratory” to refine the cabin’s acoustic system and steadily enhance the competitive edge of its high‑end, intelligent electric vehicles.
Deepening ecological and industrial cooperation, with a global footprint supporting long‑term development. Changan Automobile has signed a comprehensive strategic cooperation agreement with Midea Group, focusing on “People–Vehicle–Home” scenarios to build core functions such as vehicle‑controlled home applications. It is also deepening its five‑year strategic partnership with CATL to explore cutting‑edge fields like battery swapping and flying cars, shifting cross‑industry collaboration from the technical level to the scenario‑experience level. In terms of global expansion, as of January, Changan’s presence had extended to 117 countries worldwide, with 41 models launched, outlining a global industrial map. Among them, the Thai plant has achieved local production and exports to Europe, with plans to double its capacity and continuously increase its localization rate. The European market is slated to launch eight all‑new models over the next three years; the Deepal brand has introduced a PHEV version to circumvent EU tariffs. Avatr, Deepal, and Qiyuan—its three major brands—are all embarking on overseas expansion. Coupled with resource integration and synergy following the establishment of the new group, this provides sustained momentum for the company’s long‑term electrification and globalization transformation.
Investment Recommendation: We are optimistic about the company’s electric and intelligent transformation, coupled with Huawei’s intelligent empowerment. We expect revenue to reach 189.6/209.5/233.5 billion yuan from 2025 to 2027, with net profits attributable to parent company at 6.31/8.16/10.94 billion yuan, and EPS at 0.64/0.82/1.10 yuan, respectively. Based on the closing price of 11.27 yuan per share on February 5, 2026, the corresponding P/E ratios are 18/14/10 times, and we maintain a “Recommend” rating.
Risk Warning: Declining industry demand; sales of domestic brands falling short of expectations; intensifying “price wars” in the industry; export sales failing to meet expectations.
