\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
The investment event company released the first quarter report of 2022. In 2022q1, the company achieved a revenue of 33.619 billion yuan, a year-on-year increase of + 8.04%; The net profit attributable to the parent company was 1.634 billion yuan, a year-on-year increase of -0.34%; The net profit deducted from non return to parent was 1.303 billion yuan, a year-on-year increase of – 2.41%; The basic EPS was 0.18 yuan / share, unchanged from the same period last year; The weighted average return on net assets was 2.58%, a year-on-year decrease of 0.25pct.
Our analysis and judgment (I) the improvement of product structure and the hot sales of medium and high-end products support the company’s revenue growth better than the sales growth. In 2022q1, the company achieved a revenue of 33.619 billion yuan, with a yoy / mom ratio of + 8.04% / – 26.29% respectively. In 2022q1, the sales volume of automobiles reached 283500, with the same / month on month ratio of – 16.32% / – 28.58% respectively. Among them, the sales volume of Harvard brand was 166756, with a year-on-year decrease of 25.13%, which dragged down the growth rate of the company’s product sales; However, the sales of wey brand and tank brand were 14285 and 25753 respectively, with a year-on-year increase of 22.34% and 79.80% respectively. The hot sales of medium and high priced products of the above two brands supported the company’s revenue growth better than sales growth. According to the company’s statistics, in 2022, the proportion of models built by Q1 company based on lemon, tank and coffee intelligent technology brands has reached 70.4%, and the proportion of intelligent models has reached 84.5%; In the first quarter, the average price of single car reached 119000 yuan, an increase of 29.12% year-on-year, and the premium ability of Great Wall Motor Company Limited(601633) brand continued to improve.
(II) the company’s gross profit margin improved against the trend and increased R & D efforts. In 2022q1, the net profit attributable to the parent company was 1.634 billion yuan, with a year-on-year increase of – 0.34% and a month on month increase of – 8.27%; The net profit deducted from non return to parent was 1.303 billion yuan, a year-on-year increase of – 2.41%. In 2022q1, the company’s gross profit margin on sales was 17.18%, with a year-on-year increase of + 2.06pct and a month on month increase of + 1.88pct. Under the adverse environment of the epidemic disturbing production and sales, weakening sales during the New Year holiday, shortage of chips and rising commodity prices, the company’s gross profit margin on Q1 improved against the trend. It is expected that it is mainly due to the optimization of product structure and the increase of the proportion of high-end products. During 2022q1, the company’s expense rate was 11.43%, with a year-on-year increase of + 3.03pct and a month on month increase of + 1.58pct, mainly due to the increase of R & D expense rate. Among them, the sales expense rate was 3.13%, year-on-year + 0.62pct, the management expense rate was 3.50%, year-on-year + 2.05pct, the R & D expense rate was 3.94%, year-on-year + 1.95pct, and the R & D investment continued to increase.
(III) overseas sales are rising, and the large volume of new cars on the market can be expected. The company adheres to category innovation, driven by brand upward and globalization, and the upward sales cycle starts. Tank 500 will be delivered in mid and late April, driving up the volume. 2022 Euler cats have begun to accept reservations, boosting the sales volume of Euler series to achieve significant growth month on month. After the listing of mocha dht-phev, the sales volume exceeded 500 in March, driving the company’s selling price to further exceed 300000 yuan. In addition, two models of Harvey cool dog / Wei brand dream fulfillment / tank 700 / diamond gun / Euler Ballet / lightning / punk cat and salon brand are expected to be on the market this year. As more personalized and high-end models are gradually listed, the company is expected to obtain new sales space from more market segments. In March, the company’s overseas sales volume was 10535 units, with a year-on-year increase of 30.8% and a month on month increase of 74.5%. The export sales volume was better than the industry level. At the end of March, the company has displayed Haval h6phev, Euler cat tank 300 and other models at the Thailand International Auto Show. In the first half of this year, mocha will also officially enter the German market to help the company’s global layout and construction.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 8.523/10.195/11.533 billion, with a year-on-year increase of 26.71% / 19.63% / 13.12%; The corresponding EPS is 0.92/1.10/1.25 yuan respectively, maintaining the “recommended” rating.
Risk tips: 1. The epidemic affects the interruption of supply chain and consumption end, thus restricting the risk of production and sales of the company; 2. Risk of rising raw material prices.
