Minsheng Securities: Maintains SAIC Group's "recommended" rating, independent brand sales impressive

Minsheng Securities research report pointed out that, benefiting from independent brand innovation and export resilience, in July 2025 SAIC Group's wholesale sales volume increased by +34.2% year-on-year, but decreased by -7.6% month-on-month; wholesale sales in Jan-Jul 2025 increased by +15.0% year-on-year, with terminal deliveries of 2.567 million vehicles, higher than wholesale sales of 2.39 million vehicles, steadily reducing inventory levels. In terms of structure, in the new energy sector, new energy vehicle sales in July reached 117,000 vehicles, an increase of +64.9% year-on-year but a decrease of -2.8% month-on-month; cumulative sales from Jan-Jul 2025 reached 764,000 vehicles, an increase of +43.5% year-on-year, achieving significant growth. In terms of independent brands, sales of independent brands reached 214,000 vehicles in July, an increase of +39.4% year-on-year; cumulative sales from Jan-Jul 2025 reached 1.518 million vehicles, an increase of +23.3% year-on-year, with sales accounting for 63.5%, an increase of +4.3 percentage points, showing significant structural optimization. Regarding exports, in Jan-Jul 2025, SAIC Group's overseas sales increased by +1.1% year-on-year. Despite unfavorable factors such as EU anti-subsidy measures, SAIC MG actively overcame challenges and achieved terminal deliveries of over 180,000 units in Europe, promoting stable growth in overseas sales. The company is benefiting from state-owned enterprise reforms and is expected to see a bottoming out, with a current P/B ratio of 0.7 times. The "recommended" rating is maintained.