CITIC SEC is optimistic about Chongqing Sokon Industry Group Stock (601127.SH) with a target price of 96 yuan. AITO's M7 and M9 car models are experiencing a stable and robust growth cycle.

In recent days, with the continuous increase in attention to AITO WENJIE (also known as Sokon), Chongqing Sokon Industry Group Stock (601127.SH) has once again gained recognition from securities firms. China Great Wall has given Chongqing Sokon Industry Group Stock an initial "buy" rating, pointing out that the entire AITO WENJIE series has garnered much attention, and the release of the new M9 is expected to continue the popularity of the previous M7, further boosting the company's performance. The latest research report from CITIC SEC believes that the vehicle cycle composed of the new M7 and M9 models of AITO WENJIE is steadily rising, maintaining a "buy" rating with a target price of 96 yuan. Since the beginning of this year, the AITO WENJIE series of products jointly designed by Chongqing Sokon Industry Group Stock and Huawei have continued to sell well. The new M7 has accumulated over 100,000 orders within two and a half months of being on the market. The panoramic intelligent flagship SUV AITO WENJIE M9 is about to be launched and has made its first appearance at the 21st Guangzhou International Auto Show, becoming one of the most popular models at the exhibition. The production and sales data released at the beginning of the month showed that in November, Chongqing Sokon Industry Group Stock's sales of new energy vehicles reached 23,834 units, a year-on-year increase of 104.39%. Among them, Chongqing Sokon Industry Group Stock's sales of automobiles reached 20,318 units, a year-on-year increase of 145.92%, both setting new records. Among them, the AITO WENJIE series delivered a total of 18,827 new vehicles in November, with the new M7 accounting for 15,242 of them, surpassing 10,000 deliveries for two consecutive months and accumulating over 27,000 deliveries. China Great Wall predicts that with the continuous delivery of the new M7 and the official launch of the new model M9, the company's operating income and operating cash flow in the fourth quarter should show significant improvement. Overall, multiple factors such as the deepening cooperation between Chongqing Sokon Industry Group Stock and Huawei, the further improvement of intelligent driving technology, the optimization of product performance, and the increasing recognition from consumers will jointly contribute to the company's upward development. It is worth mentioning that deep cooperation between Chongqing Sokon Industry Group Stock and Huawei in the smart vehicle model selection mode may be one of the important factors driving the market to improve. CITIC SEC believes that the recent strategic adjustment of Huawei's Car BU does not affect the long-term strategic partnership between the two parties, and Chongqing Sokon Industry Group Stock will still enjoy Huawei's deep empowerment. The research report further points out that currently, the production of AITO WENJIE M7 is stable, and the cumulative orders of AITO WENJIE M9 have exceeded 33,000 units. The vehicle cycle is in an upward phase, which will drive the steady development of Chongqing Sokon Industry Group Stock's market. According to the November production and sales report, Chongqing Sokon Industry Group Stock's sales of automobiles reached 20,318 units, a year-on-year increase of 145.92%, setting a new record.