CICC: Lowering the target price of Ideal Automobile-W (02015) by 15% to HK$68 to maintain “outperforming the industry” rating

The Zhitong Finance App learned that CICC released a research report stating that considering the revision of profit forecasts and the continued increase in systemic ADAS capabilities, the bank maintained the Ideal Automobile-W (02015) “outperform the industry” rating and lowered the target prices for H shares and ADR by 15% and 17% to HK$68 and $17.3 respectively, corresponding to the projected price-earnings ratio of 31 times and 23 times in 2027. The current price of H shares corresponds to 21.8 times the predicted price-earnings ratio in 2027, and the ideal (LI.US) ADR corresponds to 16.4 times the projected price-earnings ratio in 2027.

According to CICC, Ideal Automobile-W's revenue for the first half of the year fell 15.1% year on year, rising 11.7% quarter-on-quarter to RMB 25.7 billion; non-GAAP net loss was RMB 1.5 billion. Due to product mix and cost pressure, the company's performance was slightly lower than market expectations. Taking into account cost pressure and the full year product portfolio, the bank lowered its 2026 and 2027 non-GAAP net profit forecast to a loss of RMB 2.5 billion and profit of RMB 5 billion, compared to profit of RMB 1.1 billion and profit of RMB 8 billion previously.