July sales are not weak in the off-season, but the overall sales recovery progress is slightly lower than expected on August 8, 2022. Great Wall Motor released July production and sales data, with a total output of 102200 vehicles in July (+ 15.02% compared with the same period last year). Month-on-month sales were basically flat), and total sales in July were 101900 (year-on-year + 11.32%, month-on-month + 0.73%).
In April 2022, the company's production rhythm and terminal sales were greatly affected by the epidemic and supply chain problems. Since May, with the recovery of the supply side, the company's monthly sales growth rate has changed from negative to positive year-on-year. From April to July, the company's sales are-41.4% and 7.9%, respectively, compared with the same period last year. Overall, the slow season in July 2022, purchase tax concessions and other measures to support the company's monthly sales reached a new high in nearly four years, but the overall sales recovery progress is still slightly lower than expected.
We keep the company's profit forecast for 2022-2024 unchanged, with a projected net profit of 90.2 and 1.33 per share for 2022-2024 respectively, with a net profit of 90.2 and 1.33 per share for EPS, respectively. The current share price corresponds to 18.5 times of 33.1-24.3 for 2022-2024 PE, maintaining a "buy" rating.
Stimulated by measures such as purchase tax concessions, the monthly sales growth rate of Harvard / WEY/ Great Wall pickup truck / Euler / tank for the first time in July was 6.1pxt 0.3pm, 160.9pm, 120,000 respectively, and + 7.1%, 24.3%, 7.5%, 7.5%, 21.8%, 128.0% respectively. In July, 11000 new energy vehicles were sold (+ 51.6% year-on-year), accounting for 10.8% of sales. From a month-on-month point of view, the July sales of Harvard and WEY brands increased by 10005 and 147respectively, while the sales of pick-up trucks / Eulers / tanks declined. Spurred by the halving of fuel car purchase tax, Harvard's main models sold brightly in July, with Harvard H6 selling 27600 cars a month (+ 7.35% year-on-year) and Harvard dogs selling 10600 vehicles (+ 45.36% year-on-year).
Overseas sales of 14700 vehicles in July, brand upward strategy steadily promoted the company's overseas market sales of 14700 vehicles in July (+ 18.27% compared with the same period last year). On July 3, local time, the tank 300 was officially launched in the Saudi market, taking the first step of globalization. Great Wall Motor Malaysia sales Co., Ltd. was also officially established in July. In July, Great Wall Motor's sales of models worth more than 200000 yuan accounted for 15.2%, the three major technology brands accounted for 75.8%, and intelligent models accounted for 88.3%. Ballet cats and follow-up lightning cats, punk cats and other new high-end models are expected to accelerate the upward breakthrough in the price belt of the Eula brand.
Risk hint: the demand for cars at home and abroad is lower than expected, the sales of new models are less than expected, and the competition in the new energy vehicle market intensifies.