\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
Event: on March 29, 2022, the company released its annual report for 2021, achieving a total operating revenue of 136405 billion yuan, a year-on-year increase of + 32.0%, and a net profit attributable to the parent company of 6.726 billion yuan, a year-on-year increase of + 25.4%.
Revenue hit a record high, and R & D investment increased to support products. In 2021q4, the company’s operating revenue reached 45.607 billion yuan, a year-on-year increase of + 10.8% / month on month increase of + 58.0%, reaching a record high in a single quarter; The net profit attributable to the parent company was 1.781 billion yuan, a year-on-year increase of – 35.8% / month on month increase of + 25.8%. The company’s revenue reached a record high in 2021; The net cash flow from operating activities was a net inflow of 35.32 billion yuan, a year-on-year increase of + 581.61%; Overseas revenue was 16.16 billion yuan, a year-on-year increase of 142.24%, helping the operating performance to rise. In 2021, the company’s gross profit margin was 16.2%, with a year-on-year increase of -1.1pct, mainly due to the increase of management and R & D expenses. In 2021, the company’s sales / management / R & D / financial expenses were + 26.5% / + 58.5% / 46.4% / – 212.9% year-on-year respectively, the expense rate was -0.2pct / + 0.5pct / + 0.3pct / – 0.7pct year-on-year, the margin of sales expense rate decreased, and the amortization of equity incentive increased the management cost. In 2021, the company increased R & D efforts, with R & D investment of up to 9.07 billion yuan, a year-on-year increase of + 76.05%, accounting for 6.65% of revenue, providing strong technical support for product experience upgrading.
The sales volume structure continued to improve, with single vehicle revenue + 15.0% year-on-year. In 2021, the company achieved a total sales volume of 1.281 million vehicles, with a year-on-year increase of + 15.2%. Haval / tank / wey / Euler / Great Wall pickup truck achieved a sales volume of 77.00/8.46/13.50/5.84233000 vehicles respectively, with a year-on-year increase of + 2.6% / / + 140.0% / – 25.7% / + 3.6%. Among them, tanks accounted for more than 50% of the market share of hardline off-road vehicles. Great Wall pickup truck has maintained the first sales volume in China and export for 24 consecutive years, and the cumulative sales volume in the world exceeded 2 million vehicles. Thanks to the hot sales of high priced models such as tank 300 / Harvard first love / Harvard Beast / Great Wall gun, the sales structure of the company was further improved. The annual single vehicle revenue reached 106500 yuan, a year-on-year increase of + 15.0%, 21q4 reached 114900 yuan, a year-on-year increase of + 20.3% / month on month increase of + 5.8%; The profit of single vehicle reached 5300 yuan, a year-on-year increase of + 8.84%. In 2022, Haval Beast / wey Mocha DHT / tank 500 were listed one after another, which is expected to further promote sales and performance growth.
Intelligent technology enables the brand to move up, and it is expected that the volume and price will rise together in 2022. From January to February 2022, lemon, tank and coffee intelligent technology brands accounted for 75.1%. Relying on the “lemon + tank + coffee intelligent” modular platform to reduce costs and increase efficiency, the iteration of the company’s models is accelerated, and new products such as haver cool dog, tank 700 / 800, Euler ballet cat / punk cat / lightning cat and mechatron will be gradually listed, helping the company’s sales continue to rise. In terms of intelligent driving, from January to February 2022, the proportion of Great Wall intelligent vehicles has increased to 88.1%. The Noh high-level intelligent driving self-developed by Millie Zhixing plans to carry 34 Great Wall passenger vehicles by the end of 2022. Under the technical empowerment, the proportion of sales of models with a value of Great Wall Motor Company Limited(601633) 150000 yuan or more will increase to 15.5% from January to February 2021. In the future, with the gradual implementation of high-end models of various brands, the profitability of the company is expected to be further improved.
Investment suggestion: affected by the lack of core and the rise in the price of raw materials, we reduce the net profit attributable to the parent company in 2022. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 95.49/156.57/18.878 billion respectively, corresponding to 28 / 17 / 14 times of the current share price PE. Optimistic about the development of electric intelligence and multi brand strategy of the company, and maintain the “recommended” rating.
Risk tip: the price of raw materials fluctuates, the supply of chips is less than expected, and the recovery of passenger car market is less than expected
