Guangzhou Automobile Group Co.Ltd(601238) (601238)
1. According to Toyota’s latest global data, Toyota’s global production will reach a record 850000-900000 units in November. After experiencing the third quarter of chip shortage, Toyota’s global sales will rise sharply from November to December.
2. According to the global sales distribution of Toyota China and GAC Toyota in Toyota, we expect GAC Toyota’s sales will usher in an inflection point. Superimposed on the round of product cycle ushered in by GAC Toyota in China, GAC Toyota’s sales will continue to surpass the industry as a whole in the next two years and become one of the biggest winners in the era of internal volume of fuel vehicles.
3. In the era of fuel vehicles, the characteristics of Japanese vehicles are more suitable for consumers: the high reliability, convenience and full life cycle cost advantages of Japanese vehicles are the only remaining consumer attraction of fuel vehicles compared with electric vehicles. While adhering to these consumption characteristics, Toyota has increased the assembly rate of intelligent auxiliary systems and advanced electronic facilities in vehicles in the Chinese market, These will become the killer mace for Toyota to win consumers significantly in the next few years.
4. A new round of product cycle of Guangfeng has also come. Starting from the second half of 2021, Guangfeng will expand its product line with lingshang, senna, Weisa and fenglanda, which will expand Guangfeng’s product line to a new level. The average price of these four models is above the current average price of Guangfeng’s products, and the volume of new models will also make Guangfeng’s profit level reach a new level.
5. Guangfeng’s capacity expansion will also ensure that new and old products are sold in large quantities at the same time. For a long time, GAC Toyota has only two bases with a design capacity of 600000. In the third quarter of 2021, Guangfeng’s third factory was put into operation, making Guangfeng’s design capacity reach 800000 and its actual capacity exceed more than 1 million units. Effective capacity expansion will ensure the expansion of product market share.
6. The renewal speed of major competitors’ fuel vehicles has slowed down significantly. When Guangfeng expanded its product line and increased its product launch in the Chinese market, its main competitors German and American slowed down the launch of traditional products, which laid a good environment for Guangfeng’s counter trend expansion. In the era of internal rolling of fuel vehicles, it is strongly recommended to pay attention to the investment opportunities of Guangfeng’s counter trend expansion.
