Oriental Securities: Maintains a "buy" rating on SAIC Group, with steady progress towards revenue and sales targets in 2026.

The Oriental Securities research report pointed out that SAIC Group's gross profit margin in the fourth quarter has significantly improved compared to the previous quarter, and its revenue and sales volume targets for 2026 are steadily progressing. In 2025, the company's operating income was 183.99 billion yuan, a year-on-year increase of 9.0%; net profit attributable to shareholders was 7.207 billion yuan, a year-on-year increase of 7.5%. The gross profit margin in 2025 was 10.1%, an increase of 0.7 percentage points year-on-year; the gross profit margin in the fourth quarter was 13.9%, an increase of 3.5/4.9 percentage points quarter-on-quarter, mainly expected to benefit from optimization of product structure. The company's sales volume target for 2026 is 5 million vehicles, an increase of 11% year-on-year; the revenue target is 700 billion yuan, an increase of 8% year-on-year, with the gross profit margin target expected to be around 10%. In 2025, the company made significant provisions for impairments on assets. It is expected that the growth in sales volume, increase in overseas sales, optimization of product structure, and increase in sales proportion of the Shangjie model will help the independent brand achieve scale profitability. 2026 will be the year of intelligent electrification for joint venture brands. Volkswagen and Audi will launch 7 new energy vehicle models, while General Motors will further enhance its Ultium product matrix. It is expected that the acceleration of intelligent electrification transformation will help stabilize the sales volume and profitability of joint venture brands. Overseas sales volume is expected to achieve rapid growth in 2026; the profitability of overseas models is stronger than domestic models, and the increase in overseas sales volume and proportion will also help the overall profitability of the company to improve. Comparable companies have an average PE valuation of 16 times in 2026, with a target price of 17.44 yuan, maintaining a "buy" rating.