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Investing.com -- BofA Securities on Friday issued double upgrades on SAIC Motor and Eve Energy, raising both companies to “buy” from “underperform” and lifting their price objectives on stronger earnings forecasts, shipment growth, and valuation accretion.
For SAIC Motor, BofA raised the price objective to RMB27 from RMB15.3, while shares closed at RMB18.93 on Aug. 29.
The brokerage said its revised outlook reflects the expected impact of Shangjie, the new electric vehicle brand developed with Huawei.
Shangjie’s first model, the H5 SUV, launched presales on Aug. 25 with a price range of RMB169,800 to RMB209,800 and booked more than 50,000 refundable orders in a single day. Official launch is scheduled for Sept. 23.
Shangjie is projected to sell 60,000 units in 2025, 260,000 in 2026 and 550,000 in 2027.
This compares with groupwide volume forecasts of 4.61 million, 4.93 million and 5.33 million vehicles, respectively.
BofA expects revenue of RMB672.9 billion in 2025, RMB722.6 billion in 2026 and RMB805.6 billion in 2027, compared with RMB627.6 billion in 2024.
Net income is projected at RMB10.1 billion in 2025, up 503.9% year over year, before declining to RMB8 billion in both 2026 and 2027.
Earnings per share are forecast at RMB0.87 in 2025, RMB0.69 in 2026 and RMB0.70 in 2027, up from RMB0.14 in 2024. The company’s gross margin is projected at 10.7% in 2025, 10.4% in 2026 and 10.4% in 2027.
BofA’s valuation change applied 0.7x price-to-book to legacy operations and 1.3x price-to-sales for Shangjie’s contribution.
The stock is trading at 21.8x 2025 earnings and 27.3x 2026 earnings, with an expected dividend yield of 1.4% in 2025.
For Eve Energy, the price objective was raised to RMB70 from RMB37, while shares were last at RMB53.25.
BofA said profitability is expected to improve in the second half of 2025 through 2027 as production utilization rises and overseas customers including BMW and Mercedes increase purchases.
The company shipped 21.5 GWh of EV batteries and 28.7 GWh of energy storage system batteries in the first half of 2025, up 59% and 37% year over year.
BofA forecasts compound annual shipment growth of 21% for EV batteries and 31% for energy storage batteries between 2025 and 2027.
Total shipments are projected at 117 GWh in 2025, 150 GWh in 2026 and 189 GWh in 2027.
Revenue is forecast at RMB63.7 billion in 2025, RMB76.7 billion in 2026 and RMB91.5 billion in 2027, compared with RMB48.6 billion in 2024.
Net income is estimated at RMB3.9 billion in 2025, RMB6 billion in 2026 and RMB7.7 billion in 2027, versus RMB4.1 billion in 2024.
Earnings per share are projected at RMB1.91 in 2025, RMB2.94 in 2026 and RMB3.78 in 2027.
Eve’s gross margin is expected at 17.4% in 2025, 17.7% in 2026 and 17.9% in 2027. Valuation multiples stand at 27.9x 2025 earnings and 18.1x 2026 earnings, with EV/EBITDA of 17.8x and 13.2x in the same years.
The dividend yield is projected at 0.9% in 2025, rising to 1.4% in 2026 and 1.8% in 2027.