CCB International: Maintaining Zero Sports Auto (09863)'s “Outperform the Market” rating and raising the target price to HK$73.2

The Zhitong Finance App learned that CCB International released a research report stating that while maintaining Zero Sports Auto (09863)'s “outperforming the market” rating, the target price was raised from HK$46.1 to HK$73.2. The bank raised Zero Run's sales forecast by 11% and 3.5% respectively to 503,000 units and 745,000 units, respectively, and raised revenue forecasts for each year by 8.4% and 0.4%, respectively, to reflect increased consumption due to “trade-in” subsidies and overseas consumption with new models.

CCB International pointed out that Zero Sports Auto's operating data for the fourth quarter of last year has improved and is encouraging. The company expects a gross margin target of 10% to 15% for this year. The B10 model has just been launched. The price range is attractive, falling between 110,000 yuan and 139,000 yuan. Shipments will begin in April, and mass deliveries are expected in the third quarter. Zero Run expands its product portfolio to smart range-extendable electric vehicles and electric vehicles, and is expected to maintain monthly sales in the range of 40,000 to 50,000. Furthermore, the company's potential driving force is export channels in Europe and Southeast Asia.