CICC: First award Chery Automobile to outperform the industry rating target price of HK$42.00

CICC released a research report that for the first time, it covered WIC Motors (09973) and gave it an outperforming industry rating, with a target price of HK$42.00 and a current stock price of 26E.
7xP/E, based on comparable valuation method, corresponding to valuation multiple 26E 10x
P/E, which has 35% upside space compared with the current one.The company is a leading independent automobile company in China, with accelerated development of export and new energy transformation. It is estimated that the company's EPS in 25-26 will be 3.32/3.88 yuan respectively, and the CAGR in 24-26 will be 22%. The market is concerned about the performance of the company's export business, and the bank reminds the company that new energy transformation/traditional oil trucks/export business are developing steadily.
China's leading autonomous car company, multi-power, multi-brand layout
The company is a leading autonomous car company, with total sales in 2024 ranking among the top in the industry. The company adheres to the development of multiple power types, and the share of fuel vehicles has increased against the trend in recent years, consolidating the profit base; and building five major brand sequences to meet differentiated market needs. Among them, the Chery brand focuses on the mass market and has cultivated a number of world-renowned models; the Jetto brand is oriented to the pan-off-road market and has grown rapidly in recent years; Xingtu, Zhijie, and iCAR have differentiated layout, transforming from 0 to 1 new energy.
Autonomous car companies rank first in overseas sales, and have a first-mover advantage to build a moat
With more than 20 years of automobile export experience, the company has a significant first-mover advantage, ranking first among China's self-owned brand passenger car companies for 22 consecutive years (excluding the export volume of brands purchased by China companies from overseas). The rich number of channels, a globally coordinated R & D system and a complete global production capacity layout all constitute the company's moat to go to sea. Since 2025, the company has accelerated its entry into new markets such as Europe and Asia-Pacific and continued to enrich its product lines. The bank believes that overseas is expected to become an important driving force for its long-term sales and profit growth.
Have the technology self-research gene to accelerate the transformation of electric intelligence
The company has established a multi-level and all-round R & D system, built a car platform with wide coverage and high adoption, and independently developed Kunpeng Power System and Falcon Smart Driving System to create a technical base for electric intelligent transformation. The company has gradually formed a new energy brand matrix covering all price segments and multiple market segments. The new energy product cycle has strengthened. The bank expects that many new models are expected to be released in 2026. The bank is optimistic about the growth potential and latecomer of the company's new energy sales. advantage.
Potential catalyst: The company's new energy and export sales continue to improve.
Risk warning: Overseas risks, fluctuations in domestic demand, intensified competition in the industry, and new energy is lower than expected.