\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
In February, the overall sales volume was 70800, a year-on-year decrease of 20.5%, of which the sales volume of main models fell year-on-year, and the performance of wey brand and tank brand was outstanding
On March 8, 2022, Great Wall Motor Company Limited(601633) announced its February production and sales express, realizing a sales volume of 70792 vehicles, a year-on-year decrease of 20.5%; The output was 70631, a year-on-year decrease of 16.9%. From January to February 2022, the cumulative sales volume was 182570, with a year-on-year decrease of 19.95%; The cumulative output was 181949, a year-on-year decrease of 18.42%.
The sales volume of main models fell year-on-year, but the wey brand and tank brand performed well. The monthly sales volume of Harvard brand was 41994, with a year-on-year decrease of 31.23%; The monthly sales volume of Great Wall pickup truck was 11637, a year-on-year decrease of 23.07%; The monthly sales volume of Euler brand was 6261, a year-on-year decrease of 15.09%; The monthly sales volume of wey brand was 4432, with a strong year-on-year increase of 103.12%; The monthly sales volume of tank brand reached 6468, with a year-on-year increase of 96.00%.
Bosch ESP supply shortage is the main reason. The company is currently actively solving with Bosch. We believe that the chip supply is expected to recover in March and the production and sales are expected to achieve positive year-on-year growth
According to the announcement “February production and sales express” released on March 8, the main reason for the decline in production and sales in February is the insufficient supply of body electronic stability system ESP produced by Bosch auto parts (Suzhou) Co., Ltd. Bosch is the exclusive supplier of ESP configuration for Great Wall Motor Company Limited(601633) main models. At present, the company is actively promoting the work of formulating output improvement plans with Bosch group headquarters and Bosch chip suppliers, hoping to quickly solve the ESP supply problem. We believe that in the global chip supply shortage environment, there is uncertainty risk in the auto chip supply chain of various auto enterprises. At present, the company is actively negotiating solutions with Bosch to improve the stability of the core parts supply chain. We believe that the ESP supply is expected to be solved in March, supporting the recovery of the company’s production and sales, and the production and sales in March are expected to achieve positive year-on-year growth.
The product matrix continues to be updated, and a number of new models have made efforts to subdivide the market, further enrich the product matrix, the products continue to move towards “high value and intelligence”, and the subsequent profit release is expected
In 2022, Euler brand, wey brand and tank brand under Great Wall Motor Company Limited(601633) will have new cars on the market one after another, and the new category will further stimulate the new momentum of the enterprise. From January to February 2022, the sales volume of models above Great Wall Motor Company Limited(601633) 150000 yuan increased to 15.5%, the proportion of intelligent models increased to 88.1%, and the proportion of models of lemon, tank and coffee intelligent technology brands reached 75.1%.
The black cat and white cat of “cost-effective entry car” suspended orders, and ballet cat, lightning cat and punk cat promoted the high-end transformation of Euler brand. On February 23, Euler brand issued a statement announcing that its A0 pure electric vehicle black cat and white cat stopped receiving orders. We believe that under the environment of “lack of core and less electricity”, combined with the decline of new energy subsidies and the rise of raw material prices, Euler brand stops losses in time and tilts its limited resources to new models with higher profitability is a reasonable solution at present. Give priority to ensuring the delivery of high margin models, improve the brand sales structure, focus on promoting the listing of new models, and help the high-end development of Euler brand. Wey brand’s new Mocha dht-pehv was officially launched on March 1. It has launched two models with a price of 295000315000 yuan. It integrates lemon hybrid DHT technology and coffee intelligence. It is equipped with a full stack of self-developed Noh advanced intelligent driving system and has 204km wltc ultra long pure electric endurance. We believe that with the release of mocha dht-pehv, its pricing range and configuration mark that wey brand is making efforts to the high-end new energy segment. The tank 500 under the tank brand will be officially launched on March 18, reshaping the new benchmark of China’s medium and large luxury SUV. The two product matrices of “mecha technology” and “business luxury” will continue to be enriched. The new model of Great Wall pickup truck “King Kong Gun” has been fully pre sold on March 2, providing two power and two driving modes for consumers to choose, with a price of 9 Csg Holding Co.Ltd(000012) 0000 yuan. We believe that the follow-up new models will boost Great Wall Motor Company Limited(601633) to move towards “high value and intelligence”, support the follow-up increase in volume and price, and look forward to the release of follow-up profits.
Investment suggestion: according to the company’s sales volume and net profit margin in the first three quarters of 2021, considering the factors of chip shortage and rising raw material prices, we predict that the company’s revenue in 2021 will be 136.4 billion yuan, and the net profit attributable to the parent company will be 7.09 billion yuan, corresponding to pe38.9 billion yuan from 2021 to 202272 times, 22.81 times. We are optimistic about the company’s positioning ability in market segments and the strategy of “category definition brand”; Optimistic about the layout of the company in the field of intelligence; At the same time, the company launched hybrid DHT scheme and high-end intelligent electric salon platform in the field of new energy to help the company’s long-term development.
Risk tip: the company’s new car delivery is less than expected, the penetration growth of new energy vehicles is less than expected, the supply of chips, power batteries and other parts is unstable, the price of raw materials increases too much, the epidemic affects vehicle sales, and the launch of new products is less than expected.
