Key points of investment:

In the first three quarters of 2024, the company continued to optimize operating efficiency and drive performance growth. In the first three quarters of 2024, the company achieved net profit of 0.63 billion yuan, a sharp increase of about 2.4 times over the previous year. The main benefits are: First, the company continued to optimize its product structure and debt structure, actively explore domestic and foreign markets, and achieve an increase in exchange earnings and a reduction in financial expenses; second, the company continued to work to optimize the asset structure and improve resource allocation efficiency, and asset disposal income increased dramatically during the reporting period.

Key operating indicators performed steadily in the third quarter of 2024. In the third quarter of 2024, the company achieved operating income of 10.93 billion yuan, a slight decrease of 5.5% from the previous year, and a gross profit margin of 11.36%, a slight increase of 0.41 percentage points over the previous year. Net profit to mother was 0.32 billion yuan, a sharp increase of about 10.3 times the previous year, and net profit after deducting non-return to mother was about -0.32 billion yuan, a decrease of 13.2% year on year.

Open cooperation has blossomed more. While adhering to independent development, the company continues to expand open cooperation in new fields and new ecosystems. In April 2024, the company and Huawei Digital Energy signed a comprehensive strategic cooperation agreement in Beijing. The two sides will carry out comprehensive and in-depth strategic cooperation around the trinity of vehicles, machines, and chargers for new energy vehicles. In addition to Huawei, in early 2024, the company signed a strategic cooperation agreement with Ningde Times to introduce Ningde Era battery technology into various products such as new energy commercial light trucks, new energy heavy trucks, passenger cars, and buses to continuously enhance product competitiveness.

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 2024-2026 to be 0.22 billion yuan, 0.29 billion yuan, 0.41 billion yuan, and BPS will be 6.18 yuan, 6.36 yuan, and 6.60 yuan respectively. Considering that the company is still in the early stages of development and has more room for development, we will give 2024 7.0-8.0 times PB, corresponding to a reasonable price range of 43.26-49.44 yuan, and give it a “superior to the market” rating.

Risk warning. New car sales risk, price war risk, raw material price increase risk.