HK Stock Market Move | CHERY AUTO(09973) rose nearly 6% in morning trading; September exports once again exceeded 200,000 vehicles, setting a new record for Chinese automobiles.

CHERY AUTO (09973) rose nearly 6% in morning trading. As of press time, it was up 5.98% at HK$25.86, with a turnover of HK$18.8801 million. On the news front, the latest sales data released by Chery Group showed that it sold 292,308 vehicles in September, up 4.2% year-on-year; cumulative sales for the first three quarters reached 2,206,789 vehicles, up 9.9% year-on-year. Among these, in September, Chery Group exported 207,814 vehicles, with monthly exports once again exceeding 200,000 units and setting a new record for China's monthly automobile exports. Chery Group's cumulative exports in the first three quarters of this year reached 1,551,178 vehicles, up 65.6% year-on-year. In September, exports of new energy vehicle models rose 174.0% year-on-year. Huaan previously pointed out that Chery's introduction of new brands + expansion of new categories + channel expansion + increased local production capacity support the certainty of high overseas growth, while the ramp-up of high-end vehicle exports and an increased share in Western Europe provide overseas profit elasticity. The domestic peak season + new car cycle drive the recovery of domestic sales. We estimate the company's net profit attributable to shareholders for 26-28 to be RMB 21.4/26.0/31.4 billion. This corresponds to a 26-year PE of 6.1x, and we maintain a "Buy" rating.