Chongqing Sokon Industry Group Stock (601127.SH) sold 36,838 new energy vehicles in January, with the expectation of a significant improvement in profitability in the first quarter.

On February 1, Chongqing Sokon Industry Group Stock (601127.SH) released its production and sales report for January 2024. The data shows that in January, Chongqing Sokon Industry Group Stock sold 36,838 new energy vehicles, a year-on-year increase of 654.1%. In January 2024, AITO Wenzhen delivered a total of 32,973 new vehicles, an increase of 34.76% compared to the previous month, with a daily delivery of over a thousand vehicles for 24 days. It is worth mentioning that AITO Wenzhen's new M7 achieved a new record in deliveries, with 31,253 vehicles delivered in a single month, surpassing 30,000 vehicles for the first time and setting a new pace for deliveries. Currently, AITO Wenzhen's new M7 has accumulated over 140,000 pre-orders, with order growth and delivery efficiency accelerating together. With the stimulation of channels and multiple products, the new models Wenzhen M7 and M9 are expected to start a new round of volume growth, helping the company significantly improve its profitability in the first quarter. The company's profit is expected to turn positive Since the beginning of this year, AITO Wenzhen's sales have continued to steadily rise, achieving four consecutive weeks of month-on-month sales growth, leading the pack among emerging car companies. Since September last year, AITO Wenzhen's new popular models, M7 and M9, have been successively launched, boosting sales and providing users with a leading intelligent travel experience. It is reported that since January 31, the M5 and new M7 intelligent driving models of AITO Wenzhen have gradually been upgraded to the high-end package OTA version, allowing for advanced intelligent driving in urban areas without relying on high-precision maps, bringing a nationwide advanced driving experience that can be driven everywhere and gets better over time. Benefiting from the continuous increase in sales of high-end new energy vehicles, Chongqing Sokon Industry Group Stock has maintained a strong resilience in its performance. According to the disclosed performance forecast data, Chongqing Sokon Industry Group Stock is expected to achieve operating income of 35.5-36.5 billion yuan in the 2023 fiscal year, with a year-on-year improvement in net profit attributable to shareholders of 29.5%-45.1%. In this regard, CICC, EB SECURITIES, Cinda, and others have given positive comments, pointing out that Chongqing Sokon Industry Group Stock's performance is in line with market expectations. Especially with the momentum of AITO Wenzhen's M9, the abundant order volume supports a gradual increase in sales. With the release of economies of scale, cost reduction in the supply chain, and battery cost reduction, the company is expected to gradually achieve profitability. Continued innovation-driven The ultimate product performance is fundamental to winning the market and consumers, and this cannot be separated from Chongqing Sokon Industry Group Stock's deep cultivation of technological innovation, continuous enhancement of research and development capabilities, and leading intelligent manufacturing capabilities. Recently released statistics from China Automotive Engineering Research Institute Corporation (CAERI) showed that in 2023, Chongqing Sokon Industry Group Stock achieved a year-on-year growth of 407.76% in the number of invention patents, ranking first among domestic car manufacturers in terms of growth rate. In addition, in terms of the number of authorized invention patents in China's automotive industry in 2023, Chongqing Sokon Industry Group Stock achieved a year-on-year growth rate of 88.00% for the first time, entering the top 20. In the field of intelligent manufacturing, Chongqing Sokon Industry Group Stock's automotive smart factory is the first to apply the industry-leading 9000T integrated die-casting technology, achieving the highest integration degree among integrated die-casting components in the market. This has elevated the delivery quality and speed of products to new heights, effectively achieving efficient production, lightweighting, and high safety.