\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
Q1 revenue exceeded expectations, single vehicle revenue increased, and the improvement of product structure led to the growth of gross profit margin. In 2022, Q1 company achieved a total operating income of 33.619 billion yuan, a year-on-year increase of 8.04%, and the net profit attributable to the parent company was 1.634 billion yuan, a year-on-year decrease of 0.34%. After deduction, the net profit attributable to the parent company was 1.303 billion yuan, a year-on-year decrease of 2.41%; The total sales volume of Q1 of the company’s five brands was 283500, a decrease of 16.32% compared with 338800 in 21q1, but the price of single car in 22q1 was 118600 yuan, an increase of 26700 yuan year-on-year and 3700 yuan month on month; The gross profit margin of sales was 17.18%, up 2.05pct from 15.13% in the same period last year. We believe that the increase in gross profit margin is mainly due to the increase in the proportion of high priced new products such as tank series, Harvard beast and Great Wall gun passenger cars. Although the sales volume of 22q1 is lower than that in the same period, with the company’s brand rising and the continuous improvement of product structure, the average sales price of single vehicle has increased significantly year-on-year, which makes up for the impact of insufficient sales to a certain extent, and the revenue and gross profit margin have also increased. Subsequently, with the release of the company’s production capacity, Great Wall Motor Company Limited(601633) continues to adhere to the upward brand, the average price of single vehicle sales is expected to increase steadily, and there is room for further improvement of the company’s future revenue and gross profit margin.
Adhering to the brand upward strategy, the average selling price of a single car has increased. In the follow-up, with the improvement of the supply chain, it is expected that the volume and price will rise together, and the annual sales target of 1.9 million has not been adjusted. The total sales volume of the five brands of 22q1 company was 2835000, a decrease of 16.32% compared with 338800 in 21q1, of which 166800 were sold by 22q1 Haval brand, a year-on-year decrease of 25.1%; The wey brand sold 14300 vehicles, a year-on-year decrease of 45.1%; Great Wall pickups sold 43000 vehicles, a year-on-year decrease of 27.7%; EULA brand sold 33800 vehicles, with a year-on-year increase of 10%, and the sales of new energy vehicles increased steadily; The tank brand sold 25800 vehicles, accounting for 9.08% of the total sales. At present, the company’s sales target of 1.9 million units in 2022 has not been adjusted. 22q1 company’s average single vehicle sales price was 118600 yuan, an increase of 26700 yuan year-on-year and 3700 yuan month on month. We believe that as the company adheres to the brand upward and the intelligent transformation of wey brand, the average selling price of bicycles is expected to further increase. In terms of supply chain, the company’s current output is mainly subject to the supply shortage of ESP chips. Previously, the company also said that it is trying to negotiate with Bosch to ensure the supply of ESP chips. In addition, the company invested in the equity of Pilbara, an Australian lithium supplier, in the early years to ensure the normal production of electric vehicles. We believe that with the current sharp increase in the price of upstream raw materials, this will help the company maintain the stability of the supply chain and improve its cost control ability. With the improvement of subsequent chip supply, the sharp rise in the price of upstream raw materials has been alleviated, and the company’s production capacity is expected to be further released, with both volume and price rising.
The reserve of new models is sufficient, the pace of subsequent launch is expected to accelerate, and the global layout is accelerated. In terms of new models, the company has entered a new round of model launch cycle. In 2022, it will launch new models such as wey brand dream fulfillment, haver cool dog, Euler ballet cat, Euler lightning cat, Euler punk cat, tank 700, salon mechatron, etc. wey brand is expected to launch MPV. We believe that focusing on the field of new energy, adhering to the transformation of intelligence and electrification, and defining products according to needs will effectively improve the core competitiveness and product competitiveness of the company. In terms of globalization, the company accelerated the global business process and distributed the markets of Brazil, ASEAN and Western Europe. At the beginning of 2022, Great Wall Motor Company Limited(601633) acquired the plant of Mercedes Benz in Brazil, with an estimated capacity of 100000 units. It is expected to be officially put into operation in the second half of 2023. It is planned to launch 10 models within three years, which will radiate to Latin America in the future. The company has opened the markets of Thailand, Brunei, Laos and Myanmar in the ASEAN market. In 2022, it will start the normal operation of Malaysia, Vietnam, the Philippines and Singapore to form a “4 + 4” ASEAN market strategic layout. In the European market, the company has launched two new energy intelligent models at the Munich auto show in 2021, and officially set up its European headquarters in Munich, Germany, in November 2021 to accelerate the implementation of Great Wall Motor Company Limited(601633) ‘s European strategy. We believe that the acceleration of global business is of great strategic significance and will bring new revenue increment to the company in the medium and long term.
Investment suggestion: according to the company’s sales volume and net profit margin in the first quarter, considering the factors of chip shortage and rising raw material prices, we predict that the company’s net profit in 22-24 years will be 8.375 billion yuan, 10.978 billion yuan and 14.576 billion yuan; PE in 22-24 years corresponds to 24.90 times, 19.00 times and 14.31 times. We are optimistic about the company’s positioning ability in market segments and the strategy of “category definition brand”; Optimistic about the layout of the company in the field of intelligence; Optimistic about the upward transformation of the brand; The company’s hybrid DHT scheme, high-end intelligent electric salon brand, and firmly increase R & D investment in the fields of intelligence and electrification all contribute to the long-term development of the company.
Risk tip: the recovery of automobile chip supply is less than expected, the price of upstream raw materials rises sharply, the promotion and sales of new models are less than expected, the terminal sales are affected by the epidemic in some regions, and the company’s sales are affected by the intensification of market competition.
