The wave of changes in the automotive industry will be magnificent in 2021.
Focusing on China’s automobile market, after years of layout and product introduction, in 2021, the sales of Shanxi Guoxin Energy Corporation Limited(600617) automobiles reached 3.521 million, ranking first in the world for seven consecutive years. What is more surprising to the industry is that the market share of Chinese brand passenger cars has risen to 44.4%, an increase of 6 percentage points year-on-year.
Two sets of convincing data reveal two signals: first, the transformation of new energy is the general trend; 2、 Chinese automobile brands play an increasingly important role in the wave of transformation. Such trends and changes are truly reflected in Chinese automobile enterprises such as Great Wall Motor Company Limited(601633) who have been on their way several years earlier.
In 2021, Great Wall Motor Company Limited(601633) sold 1280993 new cars, a year-on-year increase of 15.2%; 142793 vehicles were sold overseas, with a year-on-year increase of 103.7%, accounting for 11.1%; A total of 136953 new energy vehicles were sold, accounting for 10.7% of the total sales… More amazing performance is in the capital market: in the past year, Great Wall Motor Company Limited(601633) share price continued to soar, and the market value once soared from 60 billion yuan to 600 billion yuan.
One by one upward data drives us to think: under the special market environment, Great Wall Motor Company Limited(601633) where does the toughness come from?
the price of a single car is up
In the process of finding the answer to this question, we found that Great Wall Motor Company Limited(601633) in the upward data, not only the sales volume and proportion, but also an important indicator – the price of a single car.
Financial data show that in the first quarter of 2021, Great Wall Motor Company Limited(601633) the average selling price of a single car is 91900 yuan; In the second quarter, the average price of a single car rose to 100800 yuan; In the third quarter, the average selling price of Great Wall Motor Company Limited(601633) has jumped to 108600 yuan. Throughout the first camp of Chinese automobile brands, the price of bicycles still hovers around 70000 yuan. Up to now, Great Wall Motor Company Limited(601633) has 11 products with more than 200000 yuan, accounting for 16%.
Single car price is an important dimension to measure the brand power and product power of automobile enterprises. The improvement of this index also means that Great Wall Motor Company Limited(601633) has been recognized in terms of pricing, sales volume, market acceptance and reputation. It can be said that “the price is up and the brand is up”.
If we continue to explore downward, it is Great Wall Motor Company Limited(601633) under the category innovation strategy that we continue to build popular models in major market segments. In the compact SUV + market, with “two locks”, Harvard big dog has locked the soul of high-performance off-road vehicles, becoming a rare load-bearing body SUV with two locks within 300000 yuan, with a total sales of 100690 vehicles throughout the year.
Another example is the tank 300, which has been hot since its launch. 84588 tanks have been delivered in 2021. Up to now, the tank brand has occupied more than 50% of the market share in China’s off-road vehicle market, and is firmly in the forefront of China’s hardline off-road vehicle market.
Shanxi Securities Co.Ltd(002500) pointed out in the research report that Great Wall Motor Company Limited(601633) has maintained good sales through the continuous introduction of new products, and the products have a good reputation, outstanding cost performance, and the frequency of popular models exceeds the industry average.
Driven by the popular models, Great Wall Motor Company Limited(601633) is gradually encroaching on the original market of the joint venture brand, and the mixed car market is a good example. Wei brand Macchiato DHT, Macchiato dht-phev and latte DHT based on “lemon DHT” hybrid system have been listed one after another. At present, the delivery volume of Macchiato DHT has climbed steadily, with a cumulative sales volume of 5145 vehicles, breaking the monopoly of the original joint venture brand in technology and products in this field.
In addition, in terms of hedging rate, Great Wall Motor Company Limited(601633) has achieved a comprehensive surpassing of products at the same level. According to the “2021 China automobile hedging report” released by the chamber of Commerce of automobile dealers of the all China Federation of industry and commerce, tank 300 and Harvard H6 ranked among the top two in the list of independent compact SUV hedging rates.
Judging from the information released by Great Wall Motor Company Limited(601633) at present, such “cash explosion” may continue in 2022. In terms of tank and salon brands, tank 500 is expected to be delivered in Q1, and the mass production version of mechatron will also be launched and delivered within the year; WeiPai Mocha PHEV and latte PHEV will be on the market soon; Euler is moving towards high-end, including ballet cat, punk cat, lightning cat and other new members of the cat family, which are expected to be listed; Haval and pickup truck also have new model reserves.
head goose effect in the wave of electric intelligence
Behind the improvement of various important indicators, including the price of bicycles, is more focused on the great victory achieved by Great Wall Motor Company Limited(601633) after the transformation in multiple dimensions, whether at the technical level, product level or organizational structure level, in the past two years.
Therefore, when the electric intelligent air outlet comes, Great Wall Motor Company Limited(601633) begins to show the potential of head geese. The capital market responded first. Although the market value fell slightly, as of the last trading day of December 2021, Great Wall Motor Company Limited(601633) ranked second in the total market value of Chinese automobile enterprises.
In the past, the investment in vehicle stocks was based on the “product cycle” framework, which was effective and had a good profit-making effect. It tracked sales and inventory in the short term, focused on the product rhythm in the medium term, and gradually ironed out in the later period with the cycle, focusing on the core competence of the vehicle plant. In the wave of electric intelligence, what is the core competence of vehicle manufacturers?
Citic Securities Company Limited(600030) the research report believes that under the wave of intelligence, the core competitiveness of the automotive industry is product definition ability and full stack self-research ability. Chinese automobile brands that have made breakthroughs in electrification and hybrid technology and are expected to achieve “double improvement” in share in the electric and fuel markets, as well as OEMs with full stack R & D capability, which are extending upstream of the industrial chain and accelerating their transformation into technology driven enterprises, are considered to be valuable investment targets.
In the field of electrification, Great Wall Motor Company Limited(601633) is now one of the few enterprises in the world that has mastered the three electricity technology of core new energy vehicles. For example, “no fire, no explosion” Dayu battery technology opens a number of patents to the whole society free of charge, so as to ensure the safety of global users to the greatest extent; Honeycomb energy focuses on the next generation of battery materials, including cobalt free batteries, quaternary batteries, jelly batteries and bee cloud platform. In the field of hydrogen energy, Great Wall Motor Company Limited(601633) launched hydrogen lime technology, covering fuel cell engine, on-board hydrogen storage and hydrogen safety technology, aiming at the pain points of high performance, high safety, long endurance, all climate and all fields.
These technologies are not concepts. In August 2021, Euler cherry cat, the first model equipped with honeycomb energy cobalt free battery, appeared at Chengdu auto show. In November of the same year, the first model of salon brand equipped with Dayu battery, mecha dragon, accepted reservation.
In addition to electrification, Great Wall Motor Company Limited(601633) ‘s full stack R & D capability in the field of intelligence can not be ignored. For example, at the algorithm level, adhere to self-study. FeMo Zhixing is the core team of Great Wall Motor Company Limited(601633) algorithm self research, which realizes the full self research of AI algorithm, advanced algorithm and engineering algorithm. At present, it has obtained mass production orders from China’s top car enterprises. As of March 2021, Great Wall Motor Company Limited(601633) 90% of the models have realized L2 level intelligent driving assistance function, and all the newly launched vehicles have realized the vehicle networking function since 2021.
For the current Chinese automobile brands, electric smart cars are undoubtedly a historic opportunity to overtake on curves. According to the report of Soochow Securities Co.Ltd(601555) Research Institute, with the help of this round of opportunities, Chinese auto enterprises with a certain production and marketing scale will go to a higher level and realize a growth path similar to that of head auto enterprises, Great Wall Motor Company Limited(601633) is one of the core players.
Obviously, such a prediction is not groundless. Just as Toyota is definitely the representative of automotive technology, like today’s Great Wall Motor Company Limited(601633) , its technical reserves in the field of intelligence and electrification are enough to continue to exceed our imagination.
