Soochow: initiates coverage on VOYAH AUTO (07489) with a "buy" rating. China's state-owned high-end new energy brand.

Soochow released a research report stating that it is expected that the net profit attributable to shareholders of VOYAH AUTO (07489) for the years 2026-2028 will be 21/30/39 billion yuan respectively. Selecting H-share listed companies primarily engaged in selling new energy vehicles such as Chongqing Sokon Industry Group Stock/BYD Company Limited/NIO/Leapmotor/Li Auto/Xpeng as comparable companies, the corresponding PE averages for 2026-2028 are 18/25/13 times (as of May 27, 2026, excluding some outliers), and the corresponding PS averages for 2026-2028 are 0.8/0.6/0.6 times (as of May 27, 2026). Considering the company's high-end brand positioning, the bank believes that the company should have a higher valuation and initiates coverage with a "buy" rating. Key points from Soochow: Basic information: The leading high-end new energy vehicle enterprise in China Development history: The company was established in 2021 as the high-end new energy vehicle brand under Dongfeng Group. Dongfeng Group directly and through entities like Dongfeng Asset Management and Wuhan Voyah, collectively hold approximately 69.47% of the voting rights, with Voyah Employee Holding Platform holding about 7.35%, ensuring core team interests are aligned. Financial performance: Continuous improvement of sales driven by a complete and iterated product matrix, coupled with a high-end brand positioning where ASP remains above 200,000 yuan. Furthermore, the company has fully integrated existing technologies and platform resources of Dongfeng Group during its development, reducing the need for basic R&D investment in core battery systems, electronic and electrical architectures, leading to overall profitability improvement. Achieved a net profit attributable to shareholders of 10.2 billion yuan in 2025, leading in turnaround pace among similar new energy vehicle companies. Product portfolio: Comprehensive matrix layout, establishing a high-end brand image Lantu has completed a full matrix layout of the three core categories "MPV + SUV + sedan", catering to scenarios such as household commuting, family travel, business receptions, and executive commutes, forming a clear gradient product structure. Lantu's Dream Home is the flagship high-end new energy MPV model, contributing stable sales to the company with superior configurations, Huawei's ecosystem enhancement, endorsements from government and state-owned enterprises. The Taishan series continues to reinforce the high-end market positioning of the Lantu brand. Additionally, the layout of models like FREE/Shining/Soul is comprehensive, covering high-end segmented markets. Technological barriers: Self-developed full-stack foundation, leveraging top-tier partnerships VOYAH AUTO adheres to a technological route of "self-development as the root, cooperation as the wing". Lantu is the core implementation carrier of Dongfeng Group's new energy technology, establishing platform architecture, Lanhaidongli powertrain, Xiaoyao intelligent cabin, Kunpeng intelligent driving, and Lantu technology ecosystem, while collaborating deeply with top companies such as Huawei, Contemporary Amperex Technology to achieve core autonomous controllable components while leveraging the advantages of partners to support product strength enhancement and long-term growth. Exports: Advancing the "Together Lantu" overseas strategy, expanding global markets In 2024, VOYAH AUTO announced the "Together Lantu" overseas strategy, setting the core goal of "6655" - by 2030, expanding to six continents, entering 60 countries globally, establishing 500 sales and service outlets, and achieving cumulative overseas sales exceeding 500,000 vehicles. In 2026, Stellantis Group and Dongfeng Group announced plans to establish a joint venture in Europe, responsible for sales, distribution, manufacturing, procurement, and engineering research and development of Dongfeng Group's new energy models in agreed European markets, providing full-chain support for Lantu's local operations in Europe. Risk factors: Global economic recovery weaker than expected; L3-L4 intelligent technology innovation lower than expected; intensifying industry competition, etc.