UBS: Ideal Automobile-W (02015) i8 remains the focus of attention and maintains a “buy” rating

The Zhitong Finance App learned that UBS released a research report saying that Ideal Automobile-W (02015)'s first-quarter results exceeded expectations. Although the average sales price fell 12% from the same period last year, and sales volume fell 41% from quarter to quarter, the gross margin of automobiles remained strong, reaching 19.8%. Based on the Group's market sales ratio of 1.3 times in 2026 and the predicted sales volume of 800,000 vehicles, this means that the price-earnings ratio for this year and next two years is 22 times and 15 times, respectively, so it is rated as a “buy”. Management attributed the year-on-year increase in vehicle gross margin to cost cuts and pricing strategy adjustments implemented in the first quarter, but this increase was partially offset by the decline in the overall average sales price due to the increased contribution of L6 models. During the quarter, R&D expenses fell 18% year over year, mainly due to employee salary savings and differences in the launch time of new models.

According to the report, the Group's delivery volume for the second quarter of 2025 is expected to be between 123,000 and 128,000 vehicles. Considering the delivery volume of 34,000 units in April, this means that the total sales volume in May and June will reach 89,000 to 94,000 units, with an average monthly sales volume of 45,000 to 47,000 units, achieving quarterly growth. Ideal Auto launched the Mega Home and remodeled L-series models in April-May, and deliveries began to increase quarterly in May. Compared with the 2024 models, all the remodeled L series models are equipped with lidar as standard. The manufacturer's recommended retail price remains unchanged, but the discount margin has been reduced by 10,000 to 20,000 yuan. Furthermore, the Group's first all-electric SUV, the Ideal i8, will be launched in July, and its self-developed VLA (Vision Language-Action Large Vehicle) driving system is still the focus of market attention.