Event: Great Wall Motor released July sales figures: a total of 102000 units were sold, up 11% year-on-year and 1% month-on-month.
Production and marketing continued to improve, and Harvard performed well. Great Wall Motor sold a total of 102000 units in July, an increase of 11% over the same period last year and 1% month-on-month. She performed well under the influence of the high temperature holiday in July and the off-season of the industry. Harvard sold 61279 units, up 7% from the same period last year and 20% from the previous month. We believe that demand growth is mainly due to the improvement in material supply and the halving of purchase tax. Tank sales were 12473, up 128% from the same period last year, down 13% from the previous month, of which 9955 and 2518 were sold respectively. We expect that the production capacity of tank 500 (with new powertrain) is still climbing, orders are sufficient, and sales are expected to increase gradually. WEY sold 3034 units, up 5% from the previous month; Euler (good cats + ballet cats) sold 8829 units, down 23% from the previous month; and pickup sales of 16305 units, down 23% from the previous month (July is the off-season for pickups).
New products appear on the market intensively, and high-end and electrification continue to advance. 1) hybrid new models such as Harvard H6 (HEV+PHEV) and Big Dog will be on the market soon. 2) the WEY latte PHEV is officially on the market, with a good performance of online inquiries and expected sales exceeding expectations; new PHEV models such as Dream come true, Dream and six-seat SUV are expected to be launched within this year. 3) Tank 500capacity continues to climb; tank 700is expected to be available in 22Q4. 4) the precision marketing of ballet cats has been strengthened, the terminal demand is expected to continue to increase, and lightning cats and punk cats will be on the market soon. 5) the salon machine nail dragon will be on the market this year. With the continuous improvement of material supply and the accelerated listing of many high-end and electrified new products, the company ushered in a rise in volume and profit.
The three core advantages drive the steady growth of the company. Looking forward to the next 3-5 years, the three core advantages drive the steady growth of the company: 1) dare to focus on subdivision, differential positioning helps brands upward: Euler Ballet / Lightning Cat, Tank 300mp 500, and Great Wall Gun are all achievements; 2) the progressive organizational structure: one car, one brand, one company, brings accurate and new models, and continues to sell well, such as the big dog hunting version and the tank 300 border limited edition. 3) extremely high R & D efficiency and execution: lemon hybrid technology performs well in fuel economy, power performance, NVH and ride comfort; intelligent layout leads independently and insists on full-stack self-research; pure electric platform technology is stepping up research and development. In the long run, we believe that these three core strengths will drive the company's continuous growth.
Investment advice: maintain the "buy-A" rating. We estimate that the return net profit of the company from 2022 to 2024 is 91.0,22.6 and 17.96 billion yuan respectively, corresponding to the current market value, PE is 32.7,22.6 and 16.6 times respectively, maintaining the "buy-A" rating with a six-month target price of 45.50 yuan per share.
Risk hint: there is a continuing shortage of chips, new model sales fall short of expectations, and overseas business expansion falls short of expectations.