For high-potential stocks, valuation pullbacks often present bargain-hunting opportunities. SERES (09927) debuted on the Hong Kong stock market in early November, marking the largest IPO ever by a Chinese automaker and the world's largest auto IPO this year. Despite initial pressure from sector-wide corrections in Hong Kong and A-share auto stocks, the stock rebounded swiftly after five trading days as value investors stepped in. This short-term valuation dip attracted substantial long-term capital inflows.
As a global leader in premium new energy vehicles (NEVs), SERES' AITO brand consistently ranks among the top three emerging automakers. Its model lineup—M5/M7/M8/M9—includes the M8 (average price exceeding RMB 400,000) and M9 (over RMB 500,000), both dominating their respective price segments. The M8 achieved over 100,000 deliveries within five months of launch, maintaining monthly sales above 20,000 units.
Financially, SERES demonstrates robust performance: AITO's 2022-2024 sales grew at a 123.46% CAGR, driving total revenue growth of 106.42%. While 2025 faces product cycle adjustments and a high base effect, 2026 is expected to reignite high growth. Notably, SERES stands among the few profitable NEV makers, reporting Q1-Q3 2025 revenue of RMB 110.534 billion and net profit of RMB 5.312 billion (+31.56% YoY).
Strategic vision from founder Zhang Xinghai propelled SERES through three business transformations—from auto parts to minivans, then to NEVs. The 2021 Huawei partnership established AITO as a premium NEV brand and pioneered a groundbreaking business model. Leveraging Huawei's technological edge, SERES captured the high-end intelligent NEV market, becoming an industry benchmark for cross-sector integration and "new quality productive forces."
The company deepened ties with Huawei through equity investment in Shenzhen Yinwang, upgrading collaboration to "business+equity partnership" for sustained synergy. Beyond Huawei's empowerment, SERES prioritizes R&D, boasting four core technological advantages: modular platform leadership, superior ADAS experiences, and intelligent safety innovations. Its self-developed tech foundation combined with Huawei's support yields models with premium materials and industry-leading autonomous driving capabilities.
SERES operates three mega-factories (Longsheng, Fenghuang, Longxing) ensuring AITO's production capacity. The dual A+H listing not only attracted industrial and value investors but also accelerates R&D, retail expansion, and globalization. The overseas push forms a critical second growth curve—global NEV penetration remains low (11.8% ex-China vs. China's 48.9% in 2024), with Frost & Sullivan projecting 2030 penetration rates of 76.9% (China), 61.2% (Europe), and 34.4% (North America).
Backed by state-owned, institutional, and value investors—including Chongqing Industrial Fund, Lin Yuan Fund, Huatai Capital, GF Fund, and China Post Wealth Management as cornerstone investors—SERES enjoys strong capital endorsement. Its H-share listing reconstructs valuation metrics by connecting with global investors in Hong Kong's value-oriented market, initiating capital-driven globalization to build China's premium NEV brand worldwide.
Despite short-term "market noise" from macro conditions and auto sector volatility, SERES' entrenched leadership in premium NEVs and strategic positioning make it a compelling long-term investment, with current valuation adjustments potentially setting the stage for future gains.
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