Incident: The company released production and sales data for May 2024. In May, the company sold a total of 91,000 vehicles (-9.5%), overseas markets sold 34,000 units (+37.2%), and sold 25,000 new energy vehicles (+3.8%).

Export sales have maintained high growth, and domestic sales have fluctuated. In May, the company sold a total of 91,000 new vehicles (-9.5%), overseas markets sold 34,000 units (+37.2%), and sold 25,000 new energy vehicles (+3.8%).

From January to May, the company sold 462,000 units, up 11.4% year on year. The overseas market sold a total of 163,000 units, up 65.2% year on year, and sold 106,000 new energy vehicles, up 60.0% year on year. The overseas market and the new energy market performed well year on year. Judging from the sales situation of various brands, the Haval brand sold 47,000 units (-15.4%), the WEY brand sold 2,862 units (-50.4%), the tank brand 20,000 units (+94.9%), the Euler brand 6005 units (-43.4%), and the Great Wall pickup truck 15,000 units (-18.8%) in May.

Among them, the Great Wall pickup truck model has the highest sales volume, the domestic terminal market accounts for nearly 50%, hardcore off-road models have the highest sales volume, and off-road new energy models have the highest sales volume. Great Wall Motor adheres to the long-term principle, efficiently promotes “quantitative and quality improvement”, and its market influence continues to grow.

Continue to improve the overseas layout and accelerate ecological access to the sea. 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 continue to promote the strategic layout of globalization. Great Wall Motor has more than 14 million global users, and has a full product matrix of all categories, full power and grade, with the development goal of serving the needs of users in the global market.

A number of models have been launched and upgraded, and the product matrix continues to be refreshed. Pre-orders for the new generation Haval H6 have already started, using the “Galaxy Aesthetics” design to achieve a new evolution in the four dimensions of design, power, intelligence and comfort, reshaping the benchmark for household SUVs; the five-seater flagship electric SUV Weipai New Mocha Hi4 is officially launched, with four-speed electric four-wheel drive four-speed acceleration in four seconds; the 2024 Eula Good Cat and 2024 Oula Good Cat GT Magnolia Edition are officially launched; the 2.4T passenger pickup truck and 2.4T commercial pickup truck are officially launched. On May 28, all models in the Wei brand coffee series began a new round of OTA upgrades, ushering in the biggest OTA iteration of Coffee OS so far. Takayama and Blue Mountain had 252 feature iterations/optimizations, and 153 mocha, latte, and macchiato. The Tank 500 received Australia's ANCAP five-star safety rating. The Tank 700 Hi4-T is equipped with a self-developed 3.0T V6 engine and a high-torque vertical 9HAT transmission for off-road use.

Maintain a “Highly Recommended” investment rating. Relying on the forest ecosystem, Great Wall Motor is deepening the coverage of all scenarios and categories through continuous innovation and product restructuring, laying the foundation for a further leap forward in “quantitative and quality improvement”. Facing the future, Great Wall Motor will continue to adhere to the long-term principle, develop a global strategy, lock in an intelligent new energy circuit, and build a more prominent global core competitiveness. With continuous innovation and breakthroughs, we provide users with higher-value products and services to further achieve high-quality development. The estimated net profit for 24-26 will be 105.3/133.4/16.52 billion yuan, respectively, maintaining the “Highly Recommended” investment rating.

Risk warning: Domestic industry sales fall short of expectations; risk of raw material price fluctuations; risk of overseas sales falling short of expectations, etc.