Incident: The company issued a May sales announcement. The company's total sales volume for May 2024 was 91,000 units, a decrease of 9.5% year on year. Total sales volume for January-May was 462,000 units, up 11.42% year on year. Among them, sales of new energy vehicles in May were 25,000 units, up 3.8% year on year, and sales of new energy vehicles in January-May were 106,000 units, up 59.67% year on year. Overseas sales in May were 34,000 vehicles, up 37.2% year on year, and overseas sales in January-May were 163,000 units, up 65.18% year on year.
Tank brand sales were high year on year: Haval sold 4,7066 new cars in May, down 15.35% year on year; in January-May, Haval sold 2,099 units, up 7.86% year on year; WEY brand sold 2,862 new cars in May, cumulative sales volume of 16,928 units in January-May, up 46.59% year on year; tank sales in May were 20,326 units, up 94.90% year on year. In January-May, cumulative tank sales were 8,9979 units, up 97.52% year on year; Euler sold 6005 new cars in May Vehicles, with cumulative sales volume of 25,720 units in January-May; Great Wall Pickup sold 15,101 units in May, with cumulative sales volume of 76,665 units in January-May.
Going overseas is smooth, and globalization is progressing steadily: In May 2024, Great Wall Motor's five major brands have gone overseas, and the world has already won the favor of more than 14 million users. On May 31, Great Wall Motor held the “Win Overseas” International Organization and Institutional Change Conference to reorganize the top ten fission war zones. Regional business units directly connect with the market and users, and unify research, production, supply, sales and service resources on a regional basis to ensure the healthy development and high-quality operation of the international market and promote the global development of Chinese automobile brands.
Investment advice: We expect the company to achieve net profit of 98.99/126.69/14.947 billion yuan in 2024-2026, corresponding PE of 21.96/17.16/14.54 times, respectively, to maintain the “increase in holdings” rating.
Risk warning: Increased market competition; risk of macroeconomic fluctuations; progress of new products falls short of expectations.