Main points of investment
Event: the company released the 21-year mid-year report, 21H1 achieved revenue of 84.04 billion, year-on-year + 27.19%, return to the mother net profit of 1.507 billion, year-on-year + 200.81%. Realized deduction of non-return net profit of 1.363 billion yuan, + 184.71% compared with the same period last year.
Benefiting from the pick-up in the consumer market and the benefits of store integration, 21H1's revenue / return net profit rose 27.19 per cent year-on-year to 200.81 per cent. 21H1's revenue was 84.04 billion yuan, + 27.19% compared with the same period last year, mainly due to the resumption of business at offline outlets and the pick-up in automobile consumer market demand, and 21H1's vehicle sales revenue was + 31.18% compared with the same period last year. The gross profit margin of 21H1 is 9.46%, year-on-year-0.09pct, month-on-month + 2.02pctMagne21H1 gross profit margin of 4.1%, an increase of 2.0% over the same period last year, mainly due to the impact of brand optimization and lack of core, and the improvement of new car profitability. The after-sales gross profit margin was 36.9%, an increase of 1.2% over the same period last year, mainly to improve service efficiency and customer stickiness. The net profit of 21H1 is 1.507 billion yuan, + 200.81% compared with the same period last year. The growth rate of net profit is greater than that of revenue, mainly because: 1 the company promotes the strategy of reducing cost and efficiency, and the rate of sales expenses and management expenses decreases compared with the same period last year; 2 the scale of debt decreases, the debt structure is optimized, and the rate of financial expenses decreases compared with the same period last year. The expense rate during the 21H1 period is-1.27% compared with the same period last year, and the sales / management / financial expense rate is 0.30%, 0.27%, 0.70%, respectively, compared with the same period last year.
21Q2 revenue decreased by 0.98%, while net profit increased by 31.38%, mainly due to the increase in gross profit margin. 21Q2 has a revenue of 41.813 billion yuan, a month-on-month ratio of-0.98%, a net profit of 856 million yuan, and a month-on-month ratio of + 31.38%.
Revenue declined and net profit increased, mainly due to 21Q2 gross profit margin of 10.15%, month-on-month + 1.38pct. The expense rate during 21Q2 is 6.34%, year-on-year + 0.08%, month-on-month + 0.22%, of which sales / management / financial expenses are 3.29%, 1.53% and 1.52%, respectively, and + 0.49pct/-0.12pct/-0.15pct, respectively.
Drive the smooth implementation of the digital strategy, store integration to reap benefits, maintain the "prudent increase" rating. 21H1 is actively involved in network construction and store integration, and is currently the first sales camp for many luxury brands, including BMW, Audi, Volvo, Jaguar Land Rover, Maserati and so on. In April 2021, the company and Ping An Insurance signed a strategic cooperation agreement, the two sides will carry out various forms of digital docking and business cooperation, fully achieve resource sharing, complementary advantages, and meet the diversified needs of customers. In terms of vehicle sales, the company continues to make efforts in new media marketing, by expanding the entry of leads and increasing online live streaming, starting from customer needs, through one-stop car purchase services such as online car viewing, issuing orders, offline car pick-up, etc. to provide customers with a diversified car purchase experience.
Based on the latest situation, we adjust the 2021-2023 net net profit of 3.37 billion (from 28.7 million to 3.70 billion) to maintain the "prudent overweight" rating.
Risk hint: local subsidy policy is not as expected, store integration is not as expected, goodwill impairment risk