CICC: Chery Automobile's technological innovation empowers long-term development; maintain "Outperform" rating.

CICC issued a research report stating that Chery Automobile held the 2026 Chery Global Innovation Conference, unveiling the Yaoguang 2035 technology strategy, with technological innovation empowering long-term development and strong export growth consolidating the earnings foundation. The company is focusing on ultra-fast charging, solid-state batteries, and vehicle-to-grid interaction, continuously improving its new energy technology layout, and has released technologies and related plans including the Rhino S solid-state battery, Xunlong instant charging, and V2G vehicle-to-grid interaction. The bank noted that third-quarter exports reached 584,000 vehicles, up 58% year on year. Wholesale sales of the Luxeed V9 in the third quarter were approximately 22,000 vehicles, with notable month-on-month growth; the Luxeed RX was launched on September 28. The strong export performance is expected to support solid and improving third-quarter operating results, and with the third-quarter exchange rate base lower than in the first half, the impact of exchange gains and losses on profit is expected to weaken. Looking ahead to 2027, the company guides for 20% growth in sales volume and profit, and will accelerate localized build-out in the EU and promote domestic and overseas organizational synergy to cope with changes in trade policy. The bank maintains its net profit forecasts for the company of RMB 20.2 billion and RMB 25.1 billion for 2026 and 2027, respectively, and maintains its "Outperform" rating and HK$35 target price.