Soochow Securities has released a research report forecasting that CHERY AUTO's net profit attributable to shareholders for 2025 to 2027 will be 18.4 billion yuan, 21.1 billion yuan, and 25.4 billion yuan, respectively. The report selected H-share listed automakers Great Wall Motor, Seres, BYD Company, and Geely Automobile as comparable companies, with average price-to-earnings ratios for 2025 to 2027 of 14x, 11x, and 8x, respectively. Considering the company's strong momentum in new energy vehicle development and its solid position in exports, the brokerage believes CHERY AUTO deserves a higher valuation and has initiated coverage with a "Buy" rating. The main points of the report are as follows.

**Basic Profile: A Global Technology-Driven Automaker** CHERY AUTO was established in 1997. In its early years, it entered the mainstream and entry-level passenger vehicle market with models like the Fulwin and QQ. In recent years, the company has accelerated its dual transformation towards globalization and intelligentization. The company's current ownership structure features a balance between state-owned assets, strategic investors, and management. State-owned capital does not directly intervene in operations, management has deep incentives, and strategic investors provide synergistic support, resulting in a clear equity structure.

**Improved Financials Driven by New Energy and Exports** New energy brand series such as Fulwin, Shanhai, Exeed Sterra, iCAR, and Luxeed have achieved scaled deliveries. Overseas revenue continues to show sustained growth.

**Current Brand Portfolio: Five Brands Cover Diverse Needs** The core Chery brand targets the mainstream mass market, covering core family and export demands with high cost-performance and multiple powertrain options. Jetour focuses on the SUV segment with a travel and light off-road orientation, emphasizing space, capability, and scenario adaptability. Exeed serves as the group's premium brand, targeting mid-to-high-end users. iCAR is positioned as a youthful,个性化 pure-electric brand. Luxeed, leveraging a deep partnership with Huawei, emphasizes intelligent driving experiences.

**Exports: Deep Experience and Steady Development** 1) Markets: Starting from developing markets and expanding to multiple regions. CHERY AUTO's export strategy has evolved from initially targeting developing markets, to concentrating on key individual markets like Russia, and then upgrading to expand into Europe. In the Russian market, the company has entered a phase of active risk management. 2) Products: Tiggo series as the core, with multiple brands and powertrains. The Tiggo series forms the absolute core, with internal combustion engine and plug-in hybrid electric vehicle options available concurrently. By utilizing different powertrains, configurations, and brand packaging, the company adapts to and covers various regional markets. Fuel-powered vehicles remain the foundation of Chery's overseas sales; new energy models are being introduced more as structural supplements, primarily consisting of PHEVs. 3) Channels and Capacity: Rapid development tailored to local conditions. Overseas, Chery has established a mixed structure primarily based on a dealer authorization system, while retaining official exclusive agents or setting up local subsidiaries in some countries. In terms of overseas manufacturing布局, Chery employs a multi-regional knockdown assembly model to achieve localization and policy compliance.

**Technology Foundation: Platform Capabilities and Dual-Track Autonomous Driving Strategy** In 2025, the company integrated its subsidiaries Lion Smart Tech, Dazhuo Intelligent, and relevant businesses from the R&D headquarters to consolidate its previously分散 R&D system. The company has defined a dual-track "in-house R&D + partnership" strategy, building on its own R&D capabilities while being supported by leading technology partners like Huawei and Horizon Robotics. In March 2025, Chery launched its "Falcon Pilot" intelligent driving solution. Chery's vehicle platform architecture consists of parallel traditional fuel and new energy platforms, forming a layered structure segmented by price range and technology path.

**Risk Warnings** Global economic recovery falls short of expectations; innovation in L3-L4 autonomous driving technology is slower than anticipated; increased geopolitical uncertainty; intensified domestic price competition exceeds expectations; foreign exchange volatility risks.