CITIC Securities conducted a study on Jianghuai Automobile and released a research report: Considering the gradual improvement of the company's passenger car business and the gradual advancement of cooperation with Weilai and Huawei, CITIC Securities gave Jianghuai Automobile an EV/EBITDA valuation of 11 times in 2022, corresponding to a target price of 12.5 yuan, maintaining an "overweight" rating.
CITIC Securities said that Jianghuai Automobile achieved revenue of 40.214 billion yuan in 2021, a year-on-year increase of -6.1%; Achieved a net profit attributable to the mother of 200 million yuan, +40.2% year-on-year. Among them, passenger cars achieved sales of 252,000 units, an increase of 62.27% year-on-year, which was in line with market expectations and outperformed the industry.
There is a foundation for the passenger car business, and Volkswagen Anhui is expected to become Volkswagen's third pole in China. Jacques' Sihao brand is the core of the company's passenger car sales recovery in 2021, and by the end of December 2021, sihao E10X and E50A models have sold 36,239 units and 3,818 units, respectively. In addition, according to the electric vehicle planning of Volkswagen Group, Volkswagen Anhui is expected to be built as the core production base of the next generation of pure electric models, and the introduction of MEB and SSP car manufacturing platforms will bring great opportunities for Jianghuai Automobile to achieve epitaxial cooperation. The SSP platform introduced in the future will be a "super platform" that is competitive in terms of cost side and malleability. It is expected that the completion of Volkswagen Anhui is expected to break the pattern of "North and South Volkswagen" and become the third pole of Volkswagen Group in the Chinese market.
Clearly transform new energy vehicles, and have carried out in-depth cooperation with Weilai and Huawei. Among them, as early as April 2016, WEILAI Automobile has reached a cooperation agreement with Jianghuai Automobile, and several of the mass-produced models of WEILAI Automobile are produced by Jianghuai Automobile; The JAC Weilai cooperation project has achieved fruitful results, and has delivered more than 100,000 vehicles since it was put into production in 2018. Not long ago, JIANGHUAI Automobile and NIO motor renewed the OEM agreement plan again, JIANGHUAI will continue to produce ES8, ES6, EC6, ET7 and other possible NIO models, the production capacity expanded to 240,000 vehicles, in 2021 the company and NIO cooperation to deliver about 93,000 vehicles.
In terms of cooperation with Huawei, JAC Motor signed a comprehensive cooperation framework agreement and MDC platform project cooperation agreement with Huawei in December 2019, and carried out in-depth cooperation in intelligent driving, intelligent cockpit, intelligent electric, intelligent networking and cloud services, and worked together to accelerate the R&D and commercialization process of related products and solutions, comprehensively improve the intelligent level of JAC Automobile, and jointly promote the landing and development of intelligent transportation.
In the case of intensified market competition, in 2022, Jianghuai Automobile plans to produce and sell 568,000 vehicles and chassis of various types, an increase of 8.36% year-on-year, and is expected to achieve a total operating income of 45 billion yuan, an increase of 11.63% year-on-year. At present, Jianghuai Automobile will continue to increase foreign cooperation, and it is expected to achieve growth against the trend with the help of partners.