Guosen Securities has published a research report stating that CHERY AUTO (09973) possesses a profound historical foundation and is currently entering a new chapter in its new energy business and global expansion. The company has experienced rapid revenue growth in recent years while maintaining stable profitability. Its current brand portfolio consists of five domestic brands—Chery, Jetour, iCAR, Exeed, and Zhijie—along with two overseas brands, Omoda and Jaecoo. The company boasts substantial production capacity both domestically and internationally. This initiation of coverage comes with an "Outperform" rating. The main viewpoints of Guosen Securities are as follows.
Founded in 1997, CHERY AUTO is approaching a 30-year history and is entering a new era in 2025. The company's development journey can be broadly divided into five stages, having experienced periods of consolidation and growth. In 2025, with the integration of intelligent technologies and the further evolution of new energy, the company is stepping into a new phase. Its R&D system has been transformed from a traditional project-oriented approach to one empowered by R&D platforms. Building on this in 2025, it further integrated three major intelligent platforms—the Wuhu R&D Center, Da Zhuo Autonomous Driving, and Lion Technology—into an "Intelligent Center." In the pure electric vehicle sector, the company unveiled the QQ concept car at an auto show, signaling the revival of a classic product line. In the hybrid sector, its new model, the A9L, adopts a new design philosophy and has become a hit upon launch. Regarding global expansion, the company is strengthening its overseas presence and has successfully entered the European market.
In the domestic market, the company's hybrid products are gaining momentum for a second push, supported by a clear sub-brand strategy. Sales of its hybrid products are growing rapidly, with penetration rates climbing quickly; however, the overall new energy penetration rate still lags behind the industry average. As of the first half of 2025, the company offers numerous new energy models, but individual model sales are insufficient. Starting from the second half of 2025, the successful launch and hot sales of the A9L mark the company's entry into a new stage for its new energy business, with the new generation of products demonstrating enhanced competitiveness and achieving remarkable market performance. The main Chery/Fengyun brand is advancing on three fronts: channels, products, and technology. The iCAR brand, with new products and overseas expansion, is adopting an internet-based operational mindset. The Jetour brand is deeply cultivating the travel vehicle market and making a push into the high-end, rugged vehicle segment. The Exeed brand is focusing on its new energy transformation. The Zhijie brand has seen a sales recovery following its facelift, with potential for category expansion in the future.
In overseas markets, the company is pursuing a systematic global expansion strategy and has achieved success in multiple regions. The company established its overseas business early and is now in a phase of comprehensive, systematic global expansion. In 2025, the company is deepening local overseas production, with several new overseas production capacities set to commence operations. It is transitioning from a business model historically dominated by fuel vehicle exports to a multi-faceted, full-ecosystem systematic approach to global expansion. The company has an extensive network of production capacity and channels, and has established overseas R&D bases to adapt to the needs and regulations of different regions. The O&J brands are deeply penetrating overseas markets. In Southeast Asia, the company is increasing resource investment to build a key overseas base. In the European market, the company has achieved localized production and entered a phase of rapid growth.
Earnings forecast and valuation: The company's operating revenue for 2025-2027 is projected to be 301.462 billion yuan, 361.658 billion yuan, and 410.744 billion yuan, respectively, representing growth rates of 11.70%, 19.97%, and 13.57%. Net profit attributable to the parent company is forecast to be 18.597 billion yuan, 21.407 billion yuan, and 25.443 billion yuan, with year-on-year growth rates of 31.6%, 15.1%, and 18.9% respectively. Earnings per share are estimated to be 3.20 yuan, 3.69 yuan, and 4.38 yuan. Risk warnings include: the risk that product sales may fall below expectations; the risk that profitability may be lower than expected; the risk of intensifying competition in the domestic and international automotive industry; the risk of changes in local policies in overseas regions; and the risk of force majeure events.
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