On April 29, Great Wall Motor Company Limited(601633) ( Great Wall Motor Company Limited(601633) . SH / 02333. HK) announced that 8.6 million reserved restricted shares were granted to 275 incentive objects at the price of 12.73 yuan / share; The incentive objects are granted with the stock price of 6745000 yuan / reserved stock.
Red Star capital Bureau found that in 2021, Great Wall Motor Company Limited(601633) sold 1.281 million new cars and realized a net profit of 6.726 billion yuan, only reaching 91.79% of the assessment target of the incentive plan in 2021. In the first quarter of 2022, the cumulative sales volume was 283500 vehicles, and the net profit was 1.634 billion yuan; Only 14.9% of the sales volume target and 19.9% of the net profit target in the annual incentive plan were completed.
Great Wall Motor Company Limited(601633) 2021’s revenue, profit and sales volume reached a new high in recent five years, but its profitability is not as good as that five years ago. In the first quarter of 2022, the performance increased income without increasing profit, the net profit attributable to the parent and the net profit deducted from non net profit declined, and the government subsidy accounted for half of the net profit attributable to the parent.
Red Star capital Bureau noted that institutions are still optimistic about Great Wall Motor Company Limited(601633) . According to Hithink Royalflush Information Network Co.Ltd(300033) , 24 institutions rated Great Wall Motor Company Limited(601633) “buy” or “overweight” within one month. However, investors do not seem to recognize that Great Wall Motor Company Limited(601633) ‘s share price continued to decline. On the first trading day after the disclosure of the first quarterly report, Great Wall Motor Company Limited(601633) A-Shares and Hong Kong shares both fell sharply, and the share price hit a new low since 2021P align = “center” profitability is not as good as five years ago p align = “center” net profit depends on subsidies
In 2021, Great Wall Motor Company Limited(601633) achieved an operating revenue of 136405 billion yuan, a year-on-year increase of 32.04%; The net profit was 6.726 billion yuan, a year-on-year increase of 25.43%; Deduct non net profit of RMB 4.203 billion, with a year-on-year increase of 9.55%; The basic earnings per share is 0.73 yuan.
However, in the fourth quarter of 2021, the net profit of Great Wall Motor Company Limited(601633) decreased by 35.82% year-on-year, and the deduction of non net profit was only 550 million yuan, a year-on-year decrease of 71.93%.
In addition, among the non recurring profits and losses, Great Wall Motor Company Limited(601633) received about 2.196 billion yuan of government subsidies, an increase of 929 million yuan over the previous year. The amount of subsidies for new energy vehicles received by the company was 1.627 billion yuan, an increase of 722 million yuan over the previous year.
Although the annual performance increased, compared with the past, Great Wall Motor Company Limited(601633) ‘s profitability actually decreased In Great Wall Motor Company Limited(601633) 2021, the net profit margin of sales was only 4.93% and the gross profit margin was 16.6%. However, from 2013 to 2016, Great Wall Motor Company Limited(601633) net profit margin was 14.5%, 12.85%, 10.61% and 10.72% respectively, and gross profit margin was 28.61%, 27.7%, 25.13% and 24.46% respectively.
in the first quarter of 2022, Great Wall Motor Company Limited(601633) operating revenue was 33.619 billion yuan, a year-on-year increase of 8.04%; The net profit was 1.634 billion yuan, a year-on-year decrease of 0.34%; Deduct non net profit of 1.303 billion yuan, a year-on-year decrease of 2.41%. If the government subsidy of 800 million yuan is deducted, the net profit of Great Wall Motor Company Limited(601633) will be reduced by half
The insufficient profitability of Great Wall Motor Company Limited(601633) is related to the rising operating costs, which has to mention Great Wall Motor Company Limited(601633) ‘s “Five-Year Plan”.
In the middle of 2021, Wei Jianjun, chairman of Great Wall Motor Company Limited(601633) board of directors, said at the 2025 strategy press conference: to realize the global annual sales of 4 million vehicles in 2025, 80% of which are new energy vehicles, and the operating revenue exceeds 600 billion yuan; In the next five years, the cumulative R & D investment will reach 100 billion yuan.
In order to achieve this goal, Great Wall Motor Company Limited(601633) implements the multi brand strategy. At present, it has five brands: Haval, WeiPai, Euler, tank and Great Wall pickup truck, and is still incubating the brand salon. Throughout 2021, Great Wall Motor Company Limited(601633) launched 8 new cars.
However, multi brand strategy not only drives sales and performance, but also brings cost burden Great Wall Motor Company Limited(601633) implementing the structure of “one car, one brand and one company” requires a lot of personnel and marketing. Category innovation and technology self-research also mean more R & D investment.
In 2021, Great Wall Motor Company Limited(601633) the total operating cost reached 131878 billion yuan, with a year-on-year increase of 33.42%, higher than the revenue growth, accounting for 83.84% of the total revenue. In 2016, with a net profit of 10.354 billion yuan, the cost accounted for only 75.4% of revenue.
Among them, the management expenses increased by 58.39% due to the increase in the number of managers and the increase in equity incentive expenses; R & D expenses increased by 46.36% year-on-year due to the increase in R & D investment in intelligent, motorized and new model projects. The average sales cost of each brand is only 2.69 billion yuan to 1.65 billion yuan year-on-yearP align = “center” equity incentive assessment p align = “center” 2021 target 91.79%
In 2021, Great Wall Motor Company Limited(601633) sold 1.281 million new cars, a year-on-year increase of 14.79% Great Wall Motor Company Limited(601633) the overall average price of a single car is more than 106000 yuan, up from 92900 yuan in 2020.
In July last year, Great Wall Motor Company Limited(601633) released the largest equity incentive plan in the history of the automotive industry, which plans to grant 43184000 restricted shares to no more than 586 people and 397 million stock options to 8784 people. The first grant proportion is 80%, and 20% is reserved.
According to the incentive plan, in the three fiscal years from 2021 to 2023, the sales assessment objectives are 1.49 million, 1.9 million and 2.8 million respectively, and the net profit assessment objectives are 6.8 billion yuan, 8.2 billion yuan and 11.5 billion yuan respectively. It can be calculated that the assessment objectives of Great Wall Motor Company Limited(601633) 2021 have been completed by 85.97% and 98.91% respectively.
The incentive plan shows that the weight of sales volume index is 55%, the weight of net profit index is 45%, and the achievement rate of performance target = completion rate × Weight. Based on this calculation, the achievement rate of performance target of Great Wall Motor Company Limited(601633) 2021 is 91.79%.
In the first quarter of this year, Great Wall Motor Company Limited(601633) accumulated sales of 283500 vehicles, down 16.32% year-on-year, underperforming the market. The sales volume only reached 14.9% of the assessment target of the equity incentive plan in 2022, and the net profit only reached 19.9% of the assessment target.
On April 29, Great Wall Motor Company Limited(601633) announced that 8.6 million reserved restricted shares were granted to 275 incentive objects at the price of 12.73 yuan / share; Grant 6790 incentive objects 78.3 million reserved stock options at the exercise price of 25.45 yuan / shareP align = “center” new energy lags behind, the transformation is not smooth p align = “center” the company’s share price has fallen, and the market value has halved
Great Wall Motor Company Limited(601633) share price has declined all the way since reaching the high of 69.8 yuan / share at the end of October 2021. The release of the 2021 annual report and the 2022 first quarterly report not only failed to save the performance of the secondary market, but on the first trading day after the disclosure of the first quarterly report, the Great Wall Motor Company Limited(601633) share price fell sharply on April 15. On April 29, Great Wall Motor Company Limited(601633) closed at 24.82 yuan / share, only one third of the highest point in October 2021.
Insiders told the Red Star capital bureau that on the one hand, it was because Great Wall Motor Company Limited(601633) released the “Five-Year Plan” in the first half of 2021, which led to a sharp rise in the stock price and an actual overdraft; On the other hand, the transformation of Great Wall Motor Company Limited(601633) new energy is not smooth
The “Five-Year Plan” requires Great Wall Motor Company Limited(601633) to fully turn to new energy, but its new energy business lags behind in growth, and the company’s advantage is still fuel vehicles.
in the first quarter of this year, the sales volume of Great Wall Motor Company Limited(601633) new energy vehicles was 35400, with a year-on-year increase of 15.31%, and the growth rate lagged behind the average level of the industry Great Wall Motor Company Limited(601633) has also dropped from the fourth place in 2021 to the eighth place in the sales ranking of new energy vehicle manufacturers
among the new energy brands of Great Wall Motor Company Limited(601633) , the pure electric brand Euler sold 135000 vehicles in 2021. In 2021, the total sales volume of Great Wall Motor Company Limited(601633) new energy vehicles was only 137000. In other words, in addition to Euler, only 2000 new energy models of great wall were sold in 2021.
in the first quarter of this year, the sales volume of Euler brand was 33800, with a year-on-year increase of 10%, accounting for 11.9% of the total sales volume of Great Wall Motor Company Limited(601633) Great Wall Motor Company Limited(601633) however, the pillar models of Euler black cat and white cat are minicars. They stopped receiving orders due to the sharp rise in the price of raw materials in February this year. Euler also exposed the “core changing door” at the end of last year, which greatly reduced the reputation of the brand. The car with small profit and quick turnover has been cut off, and the sales prospect of models with high Euler price is unclear.
WeiPai, which carries the Great Wall Motor Company Limited(601633) upward heart, will transform in 2021, position itself in the high-end new energy market and take the hybrid route. However, the sales performance of Wei lemon technology did not decrease by 25000 compared with 20250000 in 2020 in the first quarter, the sales volume was 14300, accounting for 5% of the total sales volume of Great Wall Motor Company Limited(601633) of
It can be seen that the current new energy brand is not enough to support the sales volume of Great Wall Motor Company Limited(601633) .
Great Wall Motor Company Limited(601633) is still responsible for the sales volume of fuel brand Haval, and shenche Haval H6 has topped SUV sales for 9 consecutive years.
However, in 2021, Haval brand sold 770000 vehicles, accounting for 60.11% of Great Wall Motor Company Limited(601633) total sales; In the first quarter of this year, the sales volume of Haval brand was 166800, a year-on-year decrease of 25.13%, and the contribution rate to Great Wall Motor Company Limited(601633) sales volume was 58.82%.
Fuel brand tanks aiming at the hardline off-road market were once popular with tank 300, but due to production capacity, the vehicle collection cycle was more than half a year. In the first quarter of this year, the sales volume of tank brand was 25800, accounting for 9.1% of Great Wall Motor Company Limited(601633) total sales volume.
It is worth mentioning that the conflict between Russia and Ukraine will continue to affect the sales and performance of Great Wall Motor Company Limited(601633) Russia is the most important overseas market of Great Wall Motor Company Limited(601633) and contributed 4.97 billion yuan of revenue in 2021. It is reported that Great Wall Motor Company Limited(601633) in Russia is still in normal production. However, due to exchange rate fluctuations, it has stopped sending new cars to dealers. At present, only inventory cars are sold in the Russian market
However, institutions are optimistic about Great Wall Motor Company Limited(601633) . Although some institutions have lowered the target price and profit expectation, they still give the rating of “buy” or “overweight”. According to Hithink Royalflush Information Network Co.Ltd(300033) , 24 companies rated “buy” or “overweight” within one month.
UBS released a research report saying that it maintained the “buy” rating of Great Wall Motor Company Limited(601633) , lowered the earnings per share in 202224 to 27% / 21% / 13%, and reduced the target price from HK $39 to HK $16 by 59%, mainly due to the decline in the valuation of electric vehicle business, in part due to the reduction of earnings in the current challenging environment.
UBS believes that the company has recently adopted the strategy of profit maximization. The average sales price in the first quarter increased by 29% year-on-year, and the net profit of each vehicle increased by 19% year-on-year. The bank believes that the strategy is reasonable, but it has led to the shutdown of some electric vehicle products, such as black cat and white cat, and the further development of high emission internal combustion vehicles, which seems to be the deceleration of the transformation to electric vehicles. However, after the share price has fallen 61% so far this year, the bank believes that the current valuation completely underestimates the electric vehicle plan. Due to the low valuation and the expected product portfolio upgrading and new product contribution, the share price will rise.
