A memorandum of cooperation was signed with Huawei terminals to jointly promote the construction of the Hongmeng ecosystem. On March 26, 2024, Jiangqi Group and Huawei Terminal Co., Ltd. signed a memorandum of cooperation. Based on HarmonyOS based on OpenHarmony, the two sides will jointly carry out scene definition and experience design, launch native Hongmeng application development, provide users with a full range of information experience upgrades for pan-terminals, strive to provide users with smarter travel solutions, and jointly build an industry-leading information service platform for pan-life, pan-terminal, and all-scenario. The signing of this Memorandum of Cooperation will further deepen cooperation between Jiangqi Group and Huawei. While improving the safety and user experience of in-vehicle systems, it will enable cross-end interconnection of vehicles, provide users with personalized and diverse travel experiences, and enrich users' vehicle life.
Cumulative sales increased 5.1% year-on-year in January-January. In January-February 2024, Jiangqi Group's cumulative sales volume was 68,900 vehicles, up 5.10% year on year; of these, it exported 18,400 vehicles in February, up 17.20% year on year, and cumulative exports increased 37.82% year on year in January-February. In the passenger car sector, since the launch of the new Ruifeng RF8 on January 31, orders have been pouring in from all over the country. Around the Spring Festival, it has set off a boom in car deliveries in Beijing, Guangdong, Jiangsu, Zhejiang, Anhui, etc., to get off to a good start for rising sales in the 2024 market. In the commercial vehicle sector, Jiangqi Group's light and medium trucks sold 28,200 units in January-February, up 45.43% year on year; cumulative sales of heavy trucks in January-January increased 7.60% year on year; cumulative sales of multi-purpose commercial vehicles increased 59.29% year on year in January-January; and cumulative sales of buses increased 89.52% year on year in January-January.
Profit forecasting and investment advice. By actively embracing intelligent technology, JAC can not only strengthen its superior business, but also obtain new development opportunities through open cooperation, thereby driving the continuous improvement of the company's business conditions.
We expect the company's net profit for 2023-2025 to be 140 million yuan, 120 million yuan, and 170 million yuan respectively, and BPS will be 6.36 yuan, 6.46 yuan, and 6.58 yuan, respectively. We will be given 2.5-3.0 times PB in 2024, corresponding to a reasonable price range of 16.15-19.38 yuan, giving it a “superior to the market” rating.
Risk warning. New car sales risk, price war risk, raw material price increase risk.