share_log

广汇汽车(600297):汽车需求复苏驱动 1H21业绩增长

Guanghui Auto (600297): Recovery in automobile demand drives growth in 1H21 performance

華泰證券 ·  Aug 24, 2021 00:00

1H21 Guimu's net profit increased 201% year-on-year to 1.51 billion yuan

Guanghui Auto released its 2021 mid-year report on August 23:1H21 achieved sales of 378,000 new vehicles, +20.4% year on year; achieved operating income of 84.04 billion yuan, +27.2% year on year; Guimo's net profit was 1.51 billion yuan, +201% year on year, in line with the company's performance forecast (15—16 billion yuan). We believe that the company's 1H21 performance is strong, mainly due to improved automobile demand. We expect the company's 2021-2023 EPS to be 0.38/0.48/0.57 yuan respectively. Comparable to the company Wind's 2021, the average PE value is 15.6x. Considering that the company's business is highly cyclical and the brands it covers are mainly non-luxury brands, we gave the company a target price of 4.56 yuan based on 12x 2021E PE to maintain the “buy” rating.

Net profit of Guimu increased 31.4% month-on-month in 2Q21

According to the announcement, the company's 2Q21 revenue was 41.81 billion yuan, +3.3% year on year, and net profit of the mother was 860 million yuan, -4.7% year on year, but the month-on-month performance improved markedly (1Q21:650 million yuan). 2Q21 company gross profit margin 10.2% (2Q20:9.8%; 1Q21:8.8%); total cost rate for the period is 6.3% (2Q20:

6.3%; 1Q21:6.1%); net interest rate rebounded to 2.1% from the previous quarter (2Q20:2.2%; 1Q21:

1.5%). We believe that the decline in inventory and the narrowing of retail discounts due to the shortage of chip supply are the main reasons for the improvement in the company's 2Q21 operations over the previous month.

Digital transformation has officially started

According to the Securities Journal, the company plans to complete the complete transformation of a traditional car service provider to a data operation technology company within five years. In January 2021, the company set up a data operation technology platform, taking the first step in information integration. In April, the company reached a strategic cooperation with Ping An of China (601318 CH). The two parties will develop innovative cooperation in used car business and after-sales business based on the SaaS system. We believe that the company's digital layout will help increase customer retention and drive the improvement of after-sales business.

Accelerate the optimization of brand structure and layout of new energy

According to the announcement, 1H21 continues to optimize its brand structure, strategically adjust and close 22 stores with low operating efficiency, and build 8 new 4S stores. By the end of June, the company sold more than 50 passenger car brands and operated 749 4S stores. At the same time, the company accelerated the exploration of new energy market resources. 1H21 established a new energy division, actively expanded OEM licensing, and first signed a strategic cooperation agreement with the ARCFOX Extreme Fox brand. By the end of June, the company had established stable ties with more than 20 new energy brands.

Maintain a “buy” rating

We kept our net profit forecast for 2021-2023 unchanged. Comparable to the company's 2021 Wind forecast, the average PE value was 15.6x (previous value 29.9x). Based on 12x 2021E PE (previous 12x), we kept the company's target price of 4.56 yuan unchanged and maintained the “buy” rating.

Risk warning: demand for cars falls short of expectations; profit margins fall short of expectations.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment