Guoxin Securities: Covering Chery Automobile (09973) for the first time, giving it an “superior to the market” rating, the pioneer of independent brands and then evolves

The Zhitong Finance App learned that Guoxin Securities released a research report saying that Chery Auto (09973) has a deep history and is currently entering a new chapter in the company's new energy business and overseas. In recent years, revenue has grown rapidly and profitability is stable. Currently, the company's brand matrix includes five major brands: Chery, Jietu, iCar, Starway, and Intelligent World, as well as two overseas brands, Omoda and Jaecoo. The company has rich production capacity at home and abroad. Covered for the first time, it was given an “superior to the market” rating.

Guoxin Securities's main views are as follows:

Chery was founded in 1997 and has a history of nearly 30 years since its development

The company will enter a new era in 2025. The overall development process of the company can be divided into five stages, and it has experienced submersion and development; in 2025, intelligent integration and superposition of new energy sources will further evolve, and the company will enter a new stage. The company's R&D system was transformed from traditional project orientation to R&D platform empowerment. In 2025, the three intelligent platforms of Wuhu R&D Center, Dazhuo Smart Driving, and Lion Technology were integrated into an “intelligent center”; in the pure electric field, the company released a QQ concept car at the auto show, which will restart the classic product line; in the hybrid field, the company's new A9L adopted a new design concept and became a hit; in terms of going overseas, the company strengthened its overseas layout and successfully entered the European market.

In the domestic market, the company's hybrid products are gaining strength for the second time, and the sub-brand strategy is clear

The company's hybrid product sales are growing rapidly, and the penetration rate is rising rapidly, but the overall penetration rate of new energy sources is still lower than that of the industry. As of 2025H1, the company had a large number of new energy models but insufficient single product sales; starting in the second half of 2025, the A9L was launched and sold well, marking that the company's new energy has entered a new stage, a new generation of product strength has improved, and the market performance is remarkable. The main brand, Cherry/Fengyun, takes a three-pronged approach of channel, product, and technology; iCar, which combines new products and uses an Internet operating mindset; Jetu, which is deeply involved in the station wagon market and boosts the high-end hardcore market; the Starway brand focuses on new energy transformation; sales have rebounded after the smart facelift, and is expected to expand the category in the future.

Overseas markets, the company went overseas in a systematic manner, and achieved results in many regions

The company's overseas business layout was early, and it is currently in the stage of systematic and comprehensive overseas expansion. In 2025, the company will deepen overseas production, and a number of new overseas production capacity will be put into operation; the company will move from a business model that mainly focused on fuel vehicle exports in the past to a multi-faceted and systematized overseas market. The company has extensive production capacity and channel layout, and has built overseas R&D bases to meet the needs and regulations of different regions; the two major O&J brands are deeply involved in overseas markets. In Southeast Asia, the company increased resource investment to build an important overseas base; in the European market, the company achieved localized production and entered a stage of rapid growth.

Profit forecast and valuation: The company's revenue for 2025-2027 is estimated to be RMB 3014.62/3616.58/RMB 410.744 billion, respectively; net profit attributable to the parent company was RMB 185.97/214.07/25.443 billion, respectively, with year-on-year growth rates of 31.6%/15.1%/18.9%, respectively, and earnings per share of 3.20/3.69/4.38 yuan respectively.

Risk warning: risk of product sales falling short of expectations and profitability falling short of expectations; risk of increased competition in the domestic and foreign automobile industry; risk of local policy changes in overseas regions; risk of force majeure, etc.