CICC: Maintain ideal car-W (02015) "outperform industry" rating with a target price of HK$146

Zhitong Finance APP learned that CICC released a research report that the ideal car-W (02015) achieved 12268 deliveries in January, the performance was in line with expectations, maintaining the profit forecast and the "outperform industry" rating, with a target price of HK$146, corresponding to 3.6xEV/Revenue in 2022, with 38% upside from the current stock price.

Event: The company announced January deliveries: January deliveries were 12,268 units, +128.1% year-on-year and -12.9% month-on-month.

THE MAIN VIEWS OF CICC ARE AS FOLLOWS:

The january delivery performance was in line with expectations, and the channel network layout continued to advance.

Ideal Car delivered 12,268 units in January, +128.1% year-on-year, -12.9% month-on-month, and delivered more than 10,000 units for three consecutive months; Affected by the Spring Festival factor, the performance of the industry was basically flat, in line with the bank's expectations. In terms of channels, as of January 31, 2022, Ideal has 220 retail centers in the country (the company plans to achieve 400 retail centers in the country by 2022), covering 105 cities, with an average of 2.1 retail centers per city; In addition, the after-sales service has accelerated the layout, ideally has 276 after-sales maintenance centers and authorized sheet metal spray centers, covering 204 cities.

Looking ahead, ideal planning to launch a variety of high-voltage pure electric models based on whale and Shark platforms in 2023, the bank believes that the ideal or this year's front investment in charging and energy network construction, in the number and layout of charging piles and stations ushered in a dense landing.

Smart driving is among the leading echelons, and the AEB test performs well.

Previously, the Ideal OTA 3.0 version was officially launched on December 7, 2021, and updated the functions of NOA, Visual Parking and Ideal Classmate, which can realize functions such as adaptive cruise, lane keeping notes and navigation assistance. Up to now, more than 70,000 users have opened the driving experience, and the number of vehicles is in the leading echelon in China, and the bank believes that the rich actual road test data is expected to feed back the ideal algorithm ability to improve rapidly. In the previous third-party AEB test, the ideal ONE measured excellent performance, but also the only model of the test model can accurately identify the lateral vehicle and two-wheeler, verifying the ideal in the field of intelligent driving technology strength.

Steady progress towards diversification, with incremental contributions to X01 deliveries during the year.

The bank believes that the ideal of 2022 will open a new product cycle and steadily move from large items to diversification; Equipped with NvidiaOrin high-power chip and lidar, the smart luxury SUV X01 is planned for mass production at 3Q22, and the bank expects that the full new range device developed in cooperation with Xinchen Power is expected to be installed in X01, driving the overall power performance to continue to improve. In addition, based on the new X platform, the bank expects the X01 to be expected to introduce more experiential in-car smart cockpit functions.

Looking ahead, the bank believes that the ideal patience to control the rhythm of product launch, adhere to the "explosive" strategy of large single products, has internalized the consumer demand insight and product polishing ability presented on the ideal ONE into a "strong product force gene", accompanied by a rich follow-up product line, is expected to blossom in various market segments, and long-term growth can be expected.

Risk warning: The epidemic has repeatedly affected the company's production and sales; The new projects did not advance as expected.