Orient Securities: Maintains "Buy" rating on SAIC Motor, exports are an important profit growth driver.

Oriental Securities noted in a research report recently that SAIC Motor's self-owned brand profitability has improved significantly, with exports being an important profit growth driver. The company's net profit attributable to shareholders in the first half of the year was 5.152 billion yuan, down 14.4% year-on-year; second-quarter net profit attributable to shareholders was 2.126 billion yuan, down 29.0% year-on-year and 29.7% quarter-on-quarter. In the first half, the company's self-owned brand, new energy, and overseas sales all delivered strong performances, driving a substantial improvement in operating profit. Rapid growth in domestic and overseas sales of self-owned brands supported a significant improvement in self-owned brand profitability. Overseas sales are expected to be an important profit growth driver. After the company's organizational restructuring, per-vehicle profit from exports is expected to rise, overseas sales are expected to achieve rapid growth for the full year of 2026, and the overseas market will become an important growth pole for both sales and profit. The bank forecasts EPS of 1.01, 1.06, and 1.09 yuan for 2026-2028 (previously 1.09, 1.16, and 1.26 yuan, adjusted for gross margin and expense ratios, etc.), maintains the comparable company average PE valuation of 16x for 2026, a target price of 16.16 yuan, and a "Buy" rating.