\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
Key investment points
Event: the company released the first quarterly report of 2022. The company achieved a revenue of 33.62 billion yuan in 2022q1, a year-on-year increase of + 8.0%; The net profit attributable to the parent company was 1.63 billion yuan, a year-on-year increase of – 0.3%; The net profit deducted from non parent company was 1.3 billion yuan, a year-on-year increase of – 2.4%.
The product structure of the company has been continuously improved, and the single vehicle revenue and profitability have been improved: the company has continued its brand upward strategy, and the proportion of models with higher single vehicle prices has increased. 2022q1 company sells 4.3, 16.7, 1.4 and 26000 pickup trucks, Haval, wey, tank and Euler brands respectively; The proportion was 15.2% / 58.8% / 5.0% / 9.1% / 11.9% respectively, of which the share of wey / tank / Euler increased by 1.6pct/4.9pct/2.8pct respectively over the same period last year. The improvement of product structure led to the increase of bicycle price. The company’s 2022q1 bicycle revenue was 119000 yuan, a year-on-year increase of + 29.1%, a record high; 2022q1 single vehicle net profit was 5764 yuan, a year-on-year increase of + 19.1%.
The gross profit margin rose against the trend and continued to increase R & D Investment: the gross profit margin of 2022q1 company was 17.2%, year-on-year + 2.1pct; The net interest rate was 4.9%, year-on-year -0.4pct; Against the background of the sharp rise in the price of raw materials, the company’s gross profit margin increased against the trend and performed well. During 2022q1, the expense rate of the company was 11.4%, with a year-on-year increase of + 3.0pct; Among them, the sales / management / Finance / R & D expense rates were 3.1% / 3.5% / 0.9% / 3.9% respectively, with a year-on-year rate of – 0.6 / + 1.4 / + 3.0 / + 1.0pct. The company continued to increase R & D investment.
Investment suggestion: the company will continue the new product cycle in 2022, and many new models of wey / tank / Euler brand will be launched, which will help the rapid growth of the company’s sales and revenue. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 7.89 billion yuan, 10.88 billion yuan and 13.79 billion yuan respectively, and the return on net assets will be 11.8%, 14.9% and 16.5% respectively. Maintain the investment rating of “buy-b”.
Risk warning: the sales volume of newly launched models is lower than expected; The shortage of automotive chips affects the output; The price of upstream raw materials rose sharply; The epidemic affected the supply chain, and the resumption time exceeded expectations.
