Guangzhou Automobile Group Co.Ltd(601238) (601238)
Event: Recently, Guangzhou Automobile Group Co.Ltd(601238) issued a suggestive announcement on asset restructuring and capital increase of GAC EA, a wholly-owned subsidiary. The comments are as follows:
The reorganization and capital increase mainly include Guangzhou Automobile Group Co.Ltd(601238) capital increase to gac-e’an with cash of RMB 7.407 billion, and capital increase to gac-e’an with physical assets such as production equipment of RMB 3.557 billion; Gac-e’an purchased the intangible assets and fixed assets related to the pure electric new energy field of GAC Research Institute, GAC passenger cars and other entities by paying 4.975 billion yuan in cash and assuming liabilities; Gac-e’an will convert part of its capital reserve into registered capital. We believe that through this restructuring, on the one hand, GAC’s capital strength will be greatly improved; On the other hand, gac-e’an has realized the integration of research, production and marketing by undertaking R & D assets such as GAC Research Institute, and its attribute as an innovative technology company has greatly increased. The specific analysis is as follows:
The capital strength of ea’an has greatly increased: according to wind, the registered capital of ea’an before this capital increase was 1.42 billion yuan. Through Guangzhou Automobile Group Co.Ltd(601238) and the capital increase of GAC passenger cars, the registered capital of GAC ea’an will increase to 6 billion yuan. We expect that the net assets of ea’an will exceed 10 billion yuan. Ai’an will have complete R & D capacity of pure electric new energy, independent production plants and its own channels, which will provide strong guarantee for its independent operation and development.
Ai’an’s innovative technology company attribute has been enhanced: Guangzhou Automobile Group Co.Ltd(601238) attaches great importance to the development of new energy vehicles, Through GAC Research Institute and incubated technology companies (Juwan technology research, etc.), the core technologies of new energy vehicles are deeply laid out and take the lead in the pure electric platform (GEP) and three electric technologies launched industry-leading electric vehicle products. After this reorganization, gac-e’an will undertake the R & D strength of GAC Research Institute in the field of pure electric new energy. Gac-e’an will have industry-leading technical advantages in at least the following fields: 1) pure electric platform technology: e’an is one of the few enterprises in China that developed electric vehicles earlier based on the real pure electric platform. E An’s electric vehicle has obvious advantages in mileage, wheelbase and other parameters. Moreover, the GEP platform of ai’an is still undergoing iterative upgrading. In 2023, ai’an will launch gep3 0 pure electric platform, which is more conducive to improving the intelligent level of vehicles. 2) Battery technology: Guangzhou Automobile Group Co.Ltd(601238) began to plan to enter the field of independent R & D and production and manufacturing of power battery cells ten years ago. The sponge silicon negative electrode battery technology independently developed by GAC has increased the energy density of the battery pack to 205wh / kg, and the endurance mileage of aionlx model equipped with the battery exceeds 1000km. Meanwhile, EA will also invest RMB 336 million to build a battery trial production line, and the independent cell production line will be completed by the end of 2022. 3) Fast charging technology: combined with Juwan Technology Research Institute, ai’an launched high rate battery and high-voltage fast charging platform. 6C high rate fast charging can realize 0% – 80% power charging time of 8 minutes and 30% – 80% power charging time of 5 minutes. The 3C version was first installed on aionv in September this year.
Profit forecast and investment rating of the company: the restructuring and subsequent introduction and listing of ai’an are of great significance to Guangzhou Automobile Group Co.Ltd(601238) . As the development carrier of Guangzhou Automobile Group Co.Ltd(601238) pure electric new energy vehicle business, ai’an will carry forward Guangzhou Automobile Group Co.Ltd(601238) new energy vehicle business with the help of capital market, new talent incentive mechanism and efficient organizational structure. At the same time, the independent operation of ea’an will also directly show the value of ea’an. We are optimistic about the development prospect of EA and the value improvement of GAC’s independent plate. We expect the net profit of the company from 2021 to 2023 to be RMB 7.27 billion, RMB 12.89 billion and RMB 15.75 billion respectively, corresponding to EPS of RMB 0.70, RMB 1.25 and RMB 1.52. According to the closing prices of a and h on November 29, 2021, the PE of GAC A-Shares are 22, 13 and 10 times respectively, and the PE of GAC H shares are 9, 5 and 4 times respectively, maintaining the “strongly recommended” rating of GAC A and GAC H shares.
Risk tip: the industry demand is low, the company’s new models are less than expected, and the development of new energy vehicles is less than expected.
