Key points of the announcement: In May 2024, Ideal Auto delivered 35,020 new vehicles, +23.8% over the same period. It delivered 141,207 vehicles in January-May 2024, with a cumulative delivery volume of 774,571 vehicles since delivery. The overall performance is more in line with expectations. On a weekly basis, according to Ideal Auto's own disclosure, the 18th week (4.29~5.5) to the 22nd week (5.27~6.2) of 2024 delivered 0.53/0.8/0.78/0.84/0.84 million units respectively. The weekly delivery level continued to rise, and maintained the top ranking in market segments such as sales of new domestic brands, sales of new energy brands in the domestic market/sales volume of luxury brands in the domestic market.
In May, Ideal Auto delivered 35,020 new cars, +23.8% year over year. In terms of channel layout, as of May 31, Ideal Auto has 487 retail centers across the country, covering 144 cities; and 374 after-sales maintenance centers and authorized sheet spray centers, covering 214 cities. Ideal Auto has put 426 ideal supercharging stations into use across the country, and has 1,888 charging stations, and the channel network and charging system layout are more complete, providing a guarantee for subsequent pure electric model market sales. In terms of models and market share, Ideal L6 has delivered more than 15,000 vehicles since delivery began on April 24, setting the fastest record for the delivery of new Ideal Car models. Driven by the new product price system, the sales potential of 2024 Ideal L7, Ideal L8, and Ideal L9 will steadily increase. The market share grew steadily year on year, with a cumulative market share of 13.5% from January to April, ranking first among Chinese car brands.
Domestic products continue to be iteratively upgraded to further cultivate user value; overseas globalization begins to be deployed. The OTA 5.2 version was a major upgrade, bringing 19 new features and 23 experience optimizations to the three major projects including AD Pro 3.0, AD MAX 3.0, and Ideal Smart Space for Intelligent Driving, including HUD digital rearview mirror imaging, active safety, and 8 high-frequency high-risk scene capability upgrades. In terms of new markets, Ideal Company expects to initially launch products in overseas markets in 2024H2, lay out high-end domestic markets while opening up overseas markets, and opening up medium- to long-term growth space. The company expects to further upgrade its smart driving function by OTA in 2024Q3. The large model will support NOA in cities with no road map across the country, and the smart driving function will be further upgraded. At the same time, the company is actively promoting the construction of overcharging stations, which is committed to solving the obstacles to the increase in the penetration rate of pure electric models and ensuring the continuous increase in the company's sales of new pure electric vehicles in the future.
Profit forecast and investment rating: We maintain the company's revenue forecast for 2024-2026 at 1513/2169/273.2 billion yuan, respectively, +22%/+43%/+26% year-on-year, and net profit to mother of 83/13/18.6 billion yuan, respectively; corresponding EPS for 2024-2026 was 3.91/6.14/8.75 yuan, corresponding PE was 19/12/8 times, maintaining the company's “buy” rating.
Risk warning: The recovery in downstream demand for passenger cars fell short of expectations; the price war exceeded expectations.