Great Wall Motor Company Limited(601633) (601633)
Event: the company released the production and sales data in December 2021. In December, the company achieved an output of 162960 vehicles, a year-on-year increase of 8.5%; The sales volume was 162369, a year-on-year increase of 8.2%. Among them, the sales volume of Harvard brand was 94387, a year-on-year decrease of 10.5%; The sales volume of wey brand was 10065, with a year-on-year increase of 0.3%; The sales volume of pickup trucks was 25033, with a year-on-year increase of 15.7%; Euler brand sold 20926 vehicles, a year-on-year increase of 64.2%; The tank brand sells 11958 vehicles. In 2021, the company’s cumulative sales reached 1280993 vehicles, with a year-on-year increase of 15.2%, exceeding the expected annual sales target of 1.21 million vehicles.
The new models of the new platform live up to expectations and exceed expectations to achieve the sales target: Based on the new platform, the company successively launched new products in 2021 to create popular models in market segments and help the annual sales growth. In 2021, the annual sales volume of the company reached 1280993, with a year-on-year increase of 15.2%; Among them, the annual sales volume of Harvard brand was 770008, with a year-on-year increase of 2.6%; The annual sales volume of Euler brand was 135028, with a year-on-year increase of 140%; The annual sales volume of wey brand was 58363, and the cumulative number of users exceeded 450000; Tank 300 delivered 84588 vehicles in the whole year. At present, the market share of tank brand in China’s off-road vehicle market has exceeded 50%; In 2021, 233006 pickup trucks were sold, with a year-on-year increase of 3.6%. Although the industry is troubled by the shortage of chips, the company’s brands have shown strong product strength and achieved good sales growth.
The effect of category innovation strategy continues to show, and the popular models add more increment: the company continues to promote category innovation with the user as the center, and launched a number of updated and new models, such as Haval red rabbit, Haval beast, mocha, macido DHT, macido dht-phev, latte DHT, tank 300 City version, tank 500, Euler good cat GT, etc. Among them, the annual sales of Harvard big dog reached 100690 and 13028 in December 2021; Nearly 7000 Harvey beasts were delivered in the first month of listing; Euler good cat sold 50931 vehicles in the whole year and 10685 vehicles in December 2021, with a year-on-year increase of 430%; 84588 tanks were delivered in the whole year and 11958 tanks were delivered in December 2021, with a month on month increase of 18.3%. In December 2021, the sales volume of wey brand returned to more than 10000, including 4845 mocha in December, 2513 Macchiato dht12 and 2707 latte dht12. Many DHT models of wey brand were launched in the fourth quarter of 2021. At present, they are in the ramp up period of production capacity. We expect 2022 to be the first year of the outbreak of DHT models of the company.
Investment suggestion: with the mitigation of the impact of chip supply shortage, it is expected that the company’s production and sales volume may still achieve high growth in 2022. We predict that the net profit attributable to the parent company from 2021 to 2023 will be 7.95 billion yuan, 12.13 billion yuan and 13.79 billion yuan respectively, and the return on net assets will be 12.2%, 16.1% and 15.7% respectively. Maintain the investment rating of “buy-b”.
Risk warning: the sales volume of newly launched models is lower than expected; The shortage of automotive chips affects the output; Upstream raw material prices rose sharply.
