The Zhitong Finance App learned that Jefferies released a research report stating that it will maintain the Ideal Car-W (02015) “holding” rating and a target price of HK$51.1. The bank pointed out that the company recently held a Power Day electric technology conference to officially release the new “Lianshan” electric technology system. This is not simply a display of battery specifications, but rather a reflection that the company is seizing the right to define electric technology and shifting the differentiated competition of pure electric vehicles from complete vehicles to complete power systems.
The bank stated that the “Lianshan” system integrates batteries, electric drives, overcharging hardware and its own charging network, and is developed by integrating 5C charging, voltage, safety and cycle life. The company also provides a lifetime warranty against spontaneous combustion and collision-related fires.
Jefferies believes that although Ideal Auto does not continue to manufacture its own batteries, it can define cell chemistry, materials, electrodes, and battery pack structures by mastering design and data, and obtain production data from supplier factories. The bank expects China Airlines (03931) to join as a partner other than Sunwoda (300207.SZ).
The bank said that the “Lianshan” system should reduce battery costs in the long run, but in the short term, it will need to invest more than 200 million yuan in research and development every year. In addition to investment in silicon carbide, electric drives and charging infrastructure, they will all need to amortize pure electric vehicle sales. A lifetime warranty also means that the ideal car requires more battery liability. The bank anticipates that gross margin will not improve more significantly until next year.