September Volume Rebounds on "AITO M9 Ultimate"; Huawei Partnership Extended

Deutsche Bank maintains a Buy rating on Seres (601127.SS) with a price target of CNY80. Seres Auto's September wholesale volume (primarily AITO-brand NEVs) rose 23% MoM to 25,370 units (down 38% YoY), while Seres Group's total wholesale volume increased 16% MoM to 32,218 units (down 33% YoY). The sequential recovery was mainly driven by the start of deliveries of the "AITO M9 Ultimate Extended Edition" on September 12, with dealer checks indicating a 6-8 week waiting time. Management targets a recovery in AITO monthly deliveries to 30,000 units and a return to profitability via improved product mix and higher ASPs, lifting the new-generation AITO M9 price range to RMB 479,800-659,800 and planning to launch the AITO brand in Europe starting with Germany. On September 15, Huawei and Seres announced a revised AITO operating model under which Seres assumes broader responsibility for product definition, design, brand marketing, retail channels and service operations, while Huawei continues