Great Wall Motor Company Limited(601633) (601633)
Event: Great Wall Motor Company Limited(601633) released the production and sales express in December 2021. The company sold 162369 vehicles in December, a year-on-year increase of + 8.2%, and the cumulative sales from January to December were 1280993 vehicles, a year-on-year increase of + 15.2%. By brand, Haval sold 94387 vehicles in December, a year-on-year increase of – 10.5%; The sales volume of wey brand was 10065, with a year-on-year increase of + 0.3%; The sales volume of Great Wall pickup trucks was 25033, a year-on-year increase of 15.7%; The sales volume of Euler brand was 20926, a year-on-year increase of 64.2%; The sales volume of tank brand is 11958.
The product matrix has been continuously updated to help the company’s annual sales reach a record high. In 2021, the company sold more than 1.28 million vehicles. We believe that it is mainly due to the company’s transformation of the underlying structure, the transformation of the enterprise’s positioning from “automobile manufacturing enterprise” to “user service operation enterprise”, and the continuous promotion of product matrix updating centered on users. In 2021, the main models of the company’s replacement and new listing include Haval red rabbit, Haval beast, wey macchido, wey latte, wey Mocha, tank 300 city version, tank 500, Euler good cat GT, etc. In terms of sales volume of key models of the new platform, in 2021, the sales volume of Haval big dog is 100690, the sales volume of wey Mocha is 28545, the sales volume of Euler good cat is 50931, the sales volume of Euler black cat is 63492, and the sales volume of tank 300 is 84588.
New energy vehicles account for more than 10%, and the process of electric intelligence is advancing steadily. In 2021, the company sold 136953 new energy vehicles, accounting for 10.7% of the total sales, and the monthly sales of Euler brand exceeded 20000 for the first time in December. The company continued to promote the technological innovation of electrification and intelligence, and laid out the upstream and downstream industrial chain. The relevant core technologies include high-order powertrain 3.0T + 9at / 9hat, lemon hybrid DHT technology, Dayu battery, coffee intelligence 2.0, etc. In 2021, lemon hybrid DHT system was installed on the Macchiato DHT, latte DHT and haver red rabbit hybrid DHT version of wey and has been mass produced. We believe that the landing and mass production of electric intelligent technology is the effective output of Great Wall Motor Company Limited(601633) years of R & D investment and the core competitiveness of the company to seize the new track in the future.
In 2022, a number of new models will be launched, and the strong new car cycle will continue. Among the models that have been determined to be listed in 2022: in terms of Euler brand, ballet cat will be listed in the first quarter, punk cat and lightning cat will be listed in the second quarter, further enriching the company’s product matrix in the field of pure electricity. In terms of wey brand, mocha dht-phev and latte dht-phev equipped with lemon hybrid DHT will be launched in the first quarter, and dream fulfillment will also be launched within the year.
Profit forecast and investment rating of the company: the company’s sales performance in 2021 is outstanding, thanks to the change of the company’s underlying organizational structure and the accumulation of new energy and hybrid technology for many years. We are optimistic about the launch rhythm of the company’s new models in 2022. In the long run, the company’s in-depth layout in the electric and intelligent industrial chain is its core competitiveness. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 7.92 billion, RMB 11.72 billion and RMB 13.59 billion respectively, and the corresponding EPS will be RMB 0.86, RMB 1.28 and RMB 1.48 respectively. The current share price corresponds to the PE values of 52, 35 and 30 times from 2021 to 2023 respectively, maintaining the “recommended” rating.
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.
