Great Wall Motor is one of the largest manufacturers of SUVs and pickups in China, and has been deeply involved in the automotive industry for 32 years. The company fully masters the core technology of power systems, has the ability to self-develop and produce core components, and can produce automobile manufacturing equipment. The company currently owns five major vehicle brands: Haval, Weipai, Euler, Tank and Great Wall Pickup, incubated a new independent automobile technology company (Sharon Mecha Technology Co., Ltd.), and established Light Beam Automobile Co., Ltd. as a joint venture with BMW Group. Among them, Wei Pai fully advanced to high-end new energy brands with long-life DHT and Coffee Smart as leading technologies; the Euler brand positioned women's brands to quickly unlock new tracks in the global NEV women's market with differentiated strategies; and the tank brand officially announced independent operation in 2021, covering everything from compact, medium to large, to full-size high-end off-road SUV markets.
The company continues to promote strategies such as new energy, electrification, intelligence, and globalization. (1) Facing the new responsibilities and requirements given by the development of the times and changes in the energy structure, Great Wall Motor deployed ahead of time, responded comprehensively, continued to deepen the development path of automobile electrification, and continued to make precise investments in the three fields of hybrid, pure electric, and hydrogen energy. (2) In terms of intelligence, the evolution and upgrading from “perceptual intelligence” to “cognitive intelligence” will be realized. (3) In terms of globalization, in 2021, the company proposed 2025 strategic goals. The company continues to promote comprehensive and thorough innovation and transformation to transform into a global intelligent technology company.
Exchange gains and losses caused non-recurring gains and losses to exceed expectations. The company released an interim results forecast. It expects net profit of 5.30 billion yuan to 5.90 billion yuan in the first half of this year, an increase of 50.20% to 67.20% over the previous year. Non-net profit after deducting it was $1.80 billion to $2.30 billion, a year-on-year decrease of 19.07%-36.66%. The increase in performance in the first half of the year was mainly due to the company's optimization of the product structure, the rise in bicycle sales prices, the increase in gross profit and gross margin, and the increase in exchange earnings.
The company sold 101,900 vehicles in July, an increase of 11.32% over the previous year. A total of 620,500 units were sold in January-July, a year-on-year decrease of 12.58%. Among them, new energy vehicles were sold 10,900 units in July, 74,600 units were sold in January-July; 14,700 units were sold overseas in July, and 77,500 units were sold in January-July. In the second half of this year, empowered by the forested ecosystem it has built, the company will accelerate the electrification and intelligent development and launch a number of new models. It is expected to drive a steady increase in sales, further increase market share, and enter a new round of intelligent growth.
Investment suggestions: The forest-like ecosystem empowers the company's development and is expected to drive a steady increase in sales. Buying is recommended.