\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
Event: in 2022q1, the company achieved a revenue of 33.62 billion yuan, an increase of 8.0% year-on-year and a decrease of 26.3% month on month; The net profit attributable to the parent company was 1.63 billion yuan, a year-on-year decrease of 0.5% and a month on month decrease of 8.5%; Deducting non net profit of 1.3 billion yuan, a year-on-year decrease of 2.6% and a month on month increase of 136.4%.
The improvement of product structure brings ASP to a new high. In 2022q1, the sales volume was 283000 vehicles, with a year-on-year decrease of 16.5% and a month on month decrease of 28.8%; The operating revenue was 33.62 billion yuan, with a year-on-year increase of 8.0% and a month on month decrease of 26.3%, which was better than the sales volume; ASP reached a record high of 119000 yuan, with a year-on-year increase of 27000 yuan and a month on month increase of 4000 yuan. The main reason is that the sales volume of Q1 high priced models Haval beast, tank 300 and Great Wall gun accounted for 1.7pct, 0.9pct and 1PCT respectively month on month.
After reducing the impact of freight, Q1 gross profit margin increased by 2.8pct year-on-year and 0.5pct month on month. Q1 gross profit margin reached 17.2%, up 2.1pct year-on-year and 1.9pct month on month; After reducing the impact of freight (the freight is included in the operating cost from 21q4), the gross profit margin of Q1 reached 17.9%, with a year-on-year increase of 2.8pct and a month on month increase of 0.5pct. The year-on-year increase in gross profit margin was mainly due to the increase in the proportion of sales of tanks and good cats (compared with black and white cats) (8.1pct and 6.4pct year-on-year respectively). The month on month increase in gross profit margin was mainly due to the provision of year-end bonus and the reduction of Euler’s one-time expenses.
Excellent cost control and solid competitiveness of R & D investment. Q1 sales expense ratio was 3.1%, with a year-on-year decrease of 0.6pct (excellent performance under the background of year-on-year decrease in sales volume and year-on-year increase in equity incentive expenses), with a month on month increase of 0.3pct; The management expense ratio was 3.5%, with a year-on-year increase of 1.3pct (mainly affected by the accrual of equity incentive expenses), and a month on month decrease of 0.1pct; The R & D expense rate was 3.9%, with a year-on-year increase of 1.0 PCT and a month on month increase of 0.3 PCT, mainly because the company continued to increase R & D investment and talent construction in electrification and intelligence; The financial expense was 290 million yuan, with a year-on-year increase of 390 million yuan and a month on month increase of 340 million yuan, which was mainly caused by the exchange floating loss (about 400 million yuan). With the stability and slight appreciation of the ruble, Q2 is expected to offset part of the floating loss.
The core shortage is alleviated and the delivery is accelerated, and the heavy new car is accelerated to be electric and high-end. According to the tank app, the tank 300 officially resumed production on April 22; EspB point suppliers are expected to gradually increase the quantity in Q2; In addition, with the resumption of work and production in Changchun, Shenyang and Shanghai, the delivery of models is expected to accelerate. In terms of new models, q2-q3 dream fulfillment, ballet cat, lightning cat, punk cat, WeiPai MPV and mechatron will be delivered one after another, and the products will accelerate the transformation to electric / hybrid, which is expected to usher in a simultaneous increase in volume and profit. In addition, the company’s R & D investment has achieved remarkable results, with a fine hpilot3 0 urban Noh function will be officially launched soon; Currently geep3 0 electronic and electrical architecture has reached the domain control architecture, and geep4 with central computing and regional architecture will be launched this year 0 new electronic and electrical architecture, intelligent strength continues to improve.
Investment suggestion: maintain the “Buy-A” rating. Considering that the new car market capacity needs to climb and the R & D investment is expected to continue to increase, we adjusted the net profit attributable to the parent company from 2022 to 2024 to 9.10 billion yuan, 13.21 billion yuan and 17.96 billion yuan respectively (previously expected to be 10.15 billion yuan, 14.1 billion yuan and 18.94 billion yuan), corresponding to the current market value, PE is 24.7, 17.0 and 12.5 times respectively, and the six-month target price is 45.5 yuan / share, corresponding to 46.0 times PE in 2022, maintaining the “Buy-A” rating.
Risk tip: there is a continuous shortage of chips, the sales of new models are less than expected, and the overseas business development is not smooth
