Event Overview: The company has announced a share repurchase plan: It intends to use its own funds to repurchase the company’s A‑share and B‑share common stocks via centralized bidding transactions on the Shenzhen Stock Exchange, with a total repurchase amount no less than 1 billion yuan and no more than 2 billion yuan, of which 700–1.4 billion yuan will be allocated to A shares and 300–0.6 billion yuan to B shares; the upper limit of the repurchase price shall not exceed 150% of the average trading price of the company’s shares over the 30 trading days prior to the board of directors’ review of the repurchase proposal. The repurchased shares will be used to reduce the company’s registered capital, and the implementation period shall not exceed 12 months from the date on which the shareholders’ meeting approves the final plan.
The share repurchase demonstrates the company’s confidence in its development, while sound financials empower shareholder interests. This repurchase initiative is a decision made by the company based on its firm confidence in its strategic development prospects and intrinsic value, fully showcasing management’s assurance in the enterprise’s long‑term operational growth. The funds for this repurchase will come from the company’s own capital; as of the end of the third quarter of 2025, the company’s cash and cash equivalents totaled 54.4 billion yuan, providing solid financial backing for the successful implementation of the repurchase plan. From the perspective of the repurchase’s impact, these shares will be used to reduce the company’s registered capital, boost earnings per share and return on net assets, and genuinely enhance the shareholding value and investment returns for all shareholders, further guiding the market to reassess the company’s true value in the smart electrification arena.
Driven by a dual technological and ecological strategy, we are solidifying our core competitiveness. Deepal has secured the first batch of official license plates designated for L3‑level autonomous driving, marking a pivotal breakthrough in advancing intelligent driving technology from testing to compliant commercial deployment. Its S09 has completed OTA optimization for the HarmonyOS cockpit, and it will subsequently launch the L06 smart coupe, equipped with 3‑nm automotive‑grade chips plus LiDAR, further fortifying our technological barriers. Avatr’s 2026 model 07 is upgraded with Huawei Qiankun ADS 4 and the HarmonyOS cockpit, while collaborating with Bowers & Wilkins to optimize the cabin acoustic system, continuously enhancing the competitiveness of its high‑end smart products. At the same time, the company is deepening industrial ecosystem cooperation: focusing on “People–Car–Home” with Midea, implementing core ‘Car‑Control‑Home’ functions; deepening a five‑year partnership with CATL to explore cutting‑edge fields such as battery swapping and flying cars; and leveraging cross‑industry collaboration to empower technology implementation and product innovation.
The three major brands have fully expanded overseas, with remarkable results from their global strategy. The company has precisely aligned its powertrain configurations to suit the differences between domestic and international markets; the launch of the PHEV version by Deep Blue effectively circumvents EU tariffs, providing strong product support for its overseas expansion.
Global expansion has yielded remarkable results: as of January 2026, its business covers 117 countries worldwide, with 41 vehicle models in production. The Thai plant has achieved local manufacturing and is now exporting to Europe, with plans to double production capacity and further increase the localization rate. In the European market, the company plans to launch eight all-new models over the next three years, while the three major brands—Deepal, Avatr, and Changan—are making a full-scale push into overseas markets.
The integration and synergy of resources following the establishment of the new group inject continuous momentum into the company’s 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 11.19 yuan per share on February 6, 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.
