\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
Due to the lack of core and the rising cost of raw materials, the annual revenue increased year-on-year, the sales volume increased steadily, and the sales structure improved gradually. In 2021, Q4 company achieved an operating revenue of 45.607 billion yuan, a year-on-year increase of 10.79%. The annual revenue was 136405 billion yuan, a year-on-year increase of 32.04%, of which the vehicle sales revenue was 121307 billion yuan, a year-on-year increase of 31.30%; The gross profit of the whole year was 22.97 billion yuan, a year-on-year increase of 1.637 billion yuan; The net profit was 6.725 billion yuan, a year-on-year increase of 25.41%, and the net profit attributable to the parent company was 6.726 billion yuan, a year-on-year increase of 25.43%. In terms of sales volume, the company sold 1.281 million new cars in 2021, with a year-on-year increase of 14.79%. Among them, the Haval brand sold 770000 vehicles, accounting for more than 60%; EULA brand sold 135000 vehicles, a year-on-year increase of 140%; The wey brand sells 72700 vehicles; Great Wall pickup truck sales 233000; The tank brand sells 70300 vehicles. We believe that the growth of annual revenue and vehicle sales revenue is mainly due to the growth of annual vehicle sales. However, due to the impact of factors such as chip supply shortage, epidemic situation, geopolitics and the sharp rise in the price of upstream raw materials, the company’s production capacity has not been fully released, affecting terminal sales. If the above factors are improved later, the annual sales volume is expected to continue to rise. With Great Wall Motor Company Limited(601633) adhering to the upward brand transformation and timely adjusting the sales of vehicles on sale according to the price of upstream raw materials, we believe that the gross profit is expected to be further improved.
The production territory continues to expand, and firmly increase R & D investment in the fields of electrification and intelligence. In terms of production, by 2021, the company has 10 full process vehicle production bases in China, and the degree of automation is at a high level in the same industry in China; Overseas, full process vehicle production bases have been established in Thailand, Brazil and other places, and the factory has been comprehensively intelligent transformed and upgraded to further improve production efficiency and efficiency. In terms of R & D, the company invested 4.490 billion yuan in R & D in 2021, a year-on-year increase of 46.36%. The company is determined to transform to intelligent and electric, and continues to increase R & D investment in intelligent, electric, new models and other projects. At present, the company has three technology platforms: lemon, tank and coffee intelligence, covering the value innovation technology system of the whole industry chain, which is a strong accumulation of the company’s core technology. From 2021 to 2025, the company’s investment in R & D is expected to reach 100 billion yuan. By 2023, the number of R & D personnel is expected to be 30000, including 10000 software developers. We believe that the company’s continued increase in R & D investment will help to achieve the brand upward goal and improve the company’s scientific and technological hard power and product core competitiveness, which will also benefit the revenue and gross profit in the medium and long term.
It is expected to adhere to the accurate sales positioning + brand innovation ability and lead the market. The company has now formed a matrix of six brands, including Haval, WeiPai, Euler, tank, Great Wall pickup truck and salon. The company adheres to category innovation and co creation with users. The sales of tank 500, Euler cat GT and other models launched in 2021 are growing rapidly and hot. We believe that the company has strong product definition ability and is one of the core competitiveness in the transformation stage of intelligent electrification. New cars in 2022 include Haval cool dog, Wei brand dream fulfillment, Euler ballet cat, Euler lightning cat, Euler punk cat, tank 700, diamond gun and salon machine Jialong. We believe that the company has sufficient model reserves, rich product matrix, accurate brand positioning and open price range. We are optimistic about the competitiveness of the new models and are expected to lead the sales in the segment market.
Investment suggestion: Based on the sales volume and net profit published in the company’s annual report in 2021, combined with the influence of factors such as lack of core and rising prices of upstream raw materials, we adjusted the company’s net profit from 12.030 billion yuan and 15.592 billion yuan to 8.361 billion yuan and 10.952 billion yuan in 22-23 years, and the predicted net profit for 24 years is 14.547 billion yuan; The corresponding PE in 22-24 years is 31.52 times, 24.07 times and 18.12 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’s intelligent field; Optimistic about the upward transformation of the brand; The company’s hybrid DHT scheme, high-end intelligent electric salon brand, and firmly increase R & D investment in the fields of intelligence and electrification all contribute to the long-term development of the company.
Risk tip: the recovery of automobile chip supply is less than expected, the price of upstream raw materials rises sharply, the promotion and sales of new models are less than expected, the terminal sales are affected by the epidemic in some regions, and the company’s sales are affected by the intensification of market competition.
