Macquarie: Raise target price for Ideal car to HK$110, maintain "neutral" rating.

Morgan Stanley released a research report extending the valuation benchmark of Ideal Auto to the 2026 fiscal year, maintaining a target P/E ratio of 14 times unchanged. The target price for the H-share has been raised to 110 Hong Kong dollars, while the target price for the US stock has been raised to 28 US dollars, maintaining a "neutral" rating. Ideal Auto's revenue in the first quarter of this year was 25.9 billion yuan, exceeding market and the bank's expectations by 3% and 8% respectively, and also higher than the upper limit guidance of 24.7 billion yuan; the gross profit margin was 20.5%, higher than the bank's expectation of 20.2%; the operating profit margin was 1%, higher than the market and the bank's expectations of -0.7% and -0.8% respectively, due to better than expected cost control, with R&D and sales management expenses lower than expected. The bank believes that Ideal Auto's expectation for high acceptance of MEGA Home should support profit margin. The company has finally confirmed its focus on areas outside of SUVs, entering the sedan and MPV market. The bank pointed out that the upside risks include the strong/early launch of the pure electric SUV series, and continuous policy support for electric vehicle purchases.