The Zhitong Finance App learned that CICC released a research report stating that it will keep Chery Auto (09973)'s net profit forecast unchanged at 2026 and 2027, at 20.2 billion yuan and 25.1 billion yuan respectively, maintaining the “outperforming industry” rating and a target price of HK$35. There is 43% upside compared to the current stock price. The bank believes that the company continues to improve the layout of new energy and intelligent technology, the export business continues to grow at a high rate, and that impressive export performance is expected to support steady and positive business performance in the third quarter. Looking ahead to 2027, the company will guide a 20% increase in sales volume and profit, and will accelerate the construction of EU territorialization to cope with changes in trade policies and enhance global competitiveness.
CICC's main views are as follows:
The company's recent situation
In 2026, the Chery Global Innovation Conference was held, and the company released the “Yaoguang 2035 Technology Strategy”.
Focus on supercharging, solid-state batteries and vehicle network interaction, and continue to improve the layout of new energy technology
The company released technologies and related plans such as Rhino S solid-state batteries, Xunlong second charging, and V2G (Vehicle-to-Grid) vehicle network interaction.
1) Rhinoceros S solid-state battery cells have an energy density of up to 400Wh/kg, a battery life of up to 1,500 km, and can adapt to a wide temperature range of -40℃ to 100℃. The safety performance is outstanding. It is planned to be put into operation in a pilot line in 2027.
2) The maximum charging power of Xunlong is 1,440 kW in seconds, and supports 500 km of energy recharge in 5 minutes.
3) The company released large-scale AC V2G technology solutions to support free charging and discharging of vehicle electricity, and plans to build 20,000 V2G stations in 2029.
Release a number of intelligent core technologies to enhance AI capacity building
The company released CheryMind, a large-scale model for the automotive industry, and the smart driving world model engine CHERY AWE to continue improving the intelligent technology base. CheryMind is based on the company's extensive corporate knowledge, engineering data and scenario data; a central computing chip with a computing power of 1,200 TOPS is scheduled to be launched in 2027.
CHERY AWE uses a “1 world model+3 segmented models” architecture to improve understanding and decision-making capabilities in complex scenarios. The company also released a native front-loading Robotaxi, which plans to operate 100,000 vehicles worldwide by 2030; unveiled two Ling Xiao eVTOL models; and officially opened pre-orders for the first consumer-grade home-companion humanoid robot “MoBao” under Mojiao Robotics.
Exports continued to grow at a high rate in the third quarter, and many measures were taken to deal with changes in trade policy
According to the company's production and sales report, 584,000 vehicles were exported in the third quarter of 2026, an increase of 58% year-on-year, and the year-on-year decline in domestic sales narrowed. The wholesale sales volume of the Zhijie V9 in the third quarter was about 22,000 units, a significant increase over the previous month; the Zhijie RX was launched on September 28, and deliveries for the first batch of car owners will begin on October 25.
The bank believes that the impressive export performance is expected to support the company's steady and positive business performance in the third quarter. The exchange base for the third quarter was lower than in the first half of the year, and the impact of exchange gains and losses on profits is expected to weaken. Looking ahead to 2027, the company will guide a 20% increase in sales volume and profit, which will accelerate the construction of EU territorialization and promote collaboration between domestic and foreign organizations to cope with changes in trade policies and enhance global competitiveness.
Risk Alerts
Unfavorable trade policy changes, domestic demand fell short of expectations.