\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 238 Guangzhou Automobile Group Co.Ltd(601238) )
Matters:
The company released the performance report for the first quarter of 2022. In the first quarter of 2022, the company achieved a revenue of 23.15 billion yuan, a year-on-year increase of 45.7%, a net profit attributable to the parent of 3.01 billion yuan, a year-on-year increase of 27.2%, and a net profit deducted from non attributable to the parent of 2.9 billion yuan, a year-on-year increase of 30.2%.
Ping An View:
The growth of sales volume was ahead of the industry average, and the independent loss expanded year-on-year. In the first quarter of 2022, the company achieved 608000 vehicle sales, with a year-on-year increase of 22.5%, significantly ahead of the industry average. Among them, the delivery volume of GAC passenger cars and GAC ea’an in the first quarter was 90000 / 45000 units respectively, with a year-on-year increase of 21.8% / 154.9% respectively. The company’s consolidated business loss (deducting non net profit – investment income) was 1.33 billion yuan, an increase of 9.2% year-on-year. The gross profit margin of the company in the first quarter was 6.2%, down 1.8 percentage points compared with the whole year of 2021.
The joint venture’s new car has been realized brilliantly and its profitability has reached a new level. GAC Toyota and GAC Honda have excellent performance. The sales volume in the first quarter of 2022 was 247000 units / 212000 units respectively, with a year-on-year increase of 23.4% / 16.8% respectively. The profits of the two joint ventures increased significantly. In the first quarter, the investment income of the company’s joint ventures reached 4.14 billion yuan, a year-on-year increase of 24.3%. The new models have boosted the profitability of the joint venture. The sales volume of GAC Toyota’s new MPV in that quarter exceeded 15000 units. The two new SUVs fenglanda and Weisa have been officially delivered. 12318 units / 4401 units have been delivered respectively in the first quarter. At the same time, the pure electric vehicle bz4x is expected to be listed in 2022. GAC Honda delivered 21000 new sedan models in the first quarter, and the pure electric vehicle e: NP1 is expected to be listed in the first half of 2022. The performance of the two Japanese joint venture new models is bright, which is expected to drive the profitability to a new level.
Ai’an maintained rapid growth and GAC motor entered the hybrid market. Ai’an brand maintained rapid growth in the first quarter. In March, the sales volume exceeded 20000 units for the first time, and the proportion of C-end customers continued to increase. At present, GAC ai’an is valued at about 39 billion yuan, and the subsequent ai’an brand will be equipped with a new logo to continuously consolidate the brand position of ai’an in the new energy market. GAC motor recently officially released a brand-new hybrid technology brand – torque wave hybrid, which realizes the combination of turbocharged engine and th system on the basis of Toyota th hybrid system. The first torque wave hybrid model, yingku, has also been officially released and is expected to be listed in 2022. In addition, the company will successively launch hybrid models of Yingbao and M8. We are optimistic about the development prospect of the company’s hybrid models.
Profit forecast and investment suggestions: in the first quarter of 2022, the shortage of chips and the rise of raw material prices troubled the whole automobile industry, but the company performed steadily in the face of supply pressure and rising costs. The sales volume of ai’an reached new highs repeatedly, and the implementation of mixed reform helped the brand of ai’an to continue to rise. GAC motor brand started the mixed cycle. The new cars of Guangfeng and guangben are highly competitive and have great profit elasticity, which is the ballast of the company’s profits. Based on the latest situation of the company, we slightly raised the net profit forecast of the company in 2022 / 2023 / 2024 to 9.89 billion / 11.75 billion / 13.24 billion (the original net profit forecast in 2022 / 2023 / 2024 was 9.65 billion / 11.28 billion / 12.48 billion), maintaining the “recommended” rating of the company.
Risk tips: 1) the shortage of core parts such as chips will directly affect the company’s sales and market share; 2) The cost of raw materials in the upstream of new energy increased, and the end demand was restrained after the price rise of Eyan, resulting in the sales volume of Eyan falling short of expectations; 3) The epidemic isolation policy causes the company to face the risk of interruption of production, operation and supply chain; 4) The profits of the joint ventures GAC Toyota and GAC Honda are less than expected, which will have a negative impact on the overall profitability of the group.
