Lates News

Morgan Stanley's research report extends the valuation benchmark of Ideal Cars to the 2026 fiscal year, maintaining the target P/E ratio of 14 times unchanged. The target price of H shares has been raised to 110 Hong Kong dollars, while the target price of US stocks has been raised to 28 US dollars, maintaining a "neutral" rating. Ideal Cars' first quarter performance this year saw revenue of 25.9 billion yuan, which was 3% and 8% better than market and expected respectively, and also higher than the upper limit guidance of 24.7 billion yuan; the gross profit margin was 20.5%, higher than the expected 20.2% from the bank; the operating profit margin was 1%, higher than the market and the bank's expected -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 Cars' expected high acceptance of MEGA Home should be able to support the profit margin. The company has finally confirmed that it will focus on entering the sedan and MPV markets outside of the SUV field. The bank points out that upward risks include the strong/early launch of the pure electric SUV series and continuous policy support for electric vehicle purchases.