\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
In 2022, the average price of Q1 single car increased by 29% year-on-year to RMB 119000
Great Wall Motor Company Limited(601633) released the first quarterly report of 2022. In 2022, Q1 company’s total revenue was 33.6 billion yuan, up + 8.0% year on year and – 26.3% month on month; In Q1, the net profit attributable to the parent company was 1.63 billion yuan, with a year-on-year increase of – 0.34% and a month on month increase of – 8.4%. In 2022, the total sales volume of Q1 was 284000, a year-on-year increase of – 16.3%. Affected by the lack of core and the shortage of parts supply caused by the epidemic in Shanghai, Jilin and other places, Q1 sales fell year-on-year. The company’s high-end models have achieved remarkable results. In 2022, the average sales price of Q1 company’s single car was 119000 yuan, an increase of about 29% year-on-year. The increase of single car price led to the increase of Q1’s overall revenue year-on-year. We maintain the company’s profit forecast for 20222024 unchanged. It is estimated that the net profit attributable to the parent company in 20222024 will be 8.1/121/17.7 billion yuan and EPS will be 0.88/1.31/1.91 yuan / share respectively. The current share price corresponds to 27.8/18.6/12.7 times of PE in 20222024. After the core shortage problem is alleviated, the company’s performance elasticity may be large, and the “buy” rating will be maintained.
The high-end models led to a year-on-year increase of 2.1pcts in Q1 gross profit margin in 2022
In 2022, the gross profit margin of Q1 company was 17.2%, with a year-on-year increase of 2.1pcts; Q1 net interest rate was 4.9%, with a year-on-year decrease of 0.4pcts; Q1 management fee rate was 7.4%, up 2.3pcts year-on-year. The gross profit margin increased significantly year-on-year, mainly because the development of high-end models led to the increase of single vehicle profits. In the middle of 2021, the company launched the equity incentive plan of 2021, resulting in a high level of the company’s management expense ratio from the second half of 2021. The management expense ratio of Q1 in 2021 to Q1 in 2022 was 5.1% / 5.3% / 7.2% / 7.2% / 7.4% respectively.
The sales volume of several overseas market segments is the first, and the company is optimistic about the performance elasticity after the core shortage is alleviated
In 2022, Q1 sold 29300 vehicles overseas, accounting for 10.32%. In February 2022, the market share of Chile pickup truck market / South Africa compact SUV market was 19% / 15% respectively, both of which were the top sales of local segments. At present, the company is in a strong product cycle. In 2022, many new models such as lightning cat, ballet cat, mecha dragon and wey dream are planned. It is expected that after the core shortage problem is alleviated, the company is expected to usher in a simultaneous rise in volume and price, with high performance flexibility.
Risk tip: the demand for cars at home and abroad is less than expected, the sales volume of new models is less than expected, and the expansion of overseas markets is less than expected.
