Sales improved month-on-month, and sales of high-end models continued to grow steadily

On November 2, 2024, the company released the October 2024 production and sales report. In terms of sales, the company sold 0.117 million vehicles in October, down 11.1% year on year and up 7.8% month on month. Total sales in January-October were 0.971 million vehicles, down 2.5% year-on-year. Among them, Haval sold 0.073 million vehicles in October, down 7.7% year on year; WEY sold 0.0065 million vehicles, up 187.5% year on year; Great Wall Pickup sold 0.013 million vehicles, down 25.6% year on year; Euler sold 0.0056 million vehicles, down 48.6% year on year; and tank sales of 0.019 million vehicles, down 13.5% year on year. New energy vehicle sales in October were 0.032 million units, up 4.9% year on year, up 6.3% month on month; from January to October, cumulative sales of new energy vehicles were 0.244 million units, up 21.2% year on year. On the high-end side, models over 0.2 million yuan sold 0.03 million units in October, an increase of 12.7% over the previous year.

Weipai's new Blue Mountain continues to be popular, contributing a large increase

On the evening of August 21, 2024, Wei brand's new Blue Mountain was officially launched. A total of two models were launched. The official guide prices were 0.2998 million yuan and 326,800 yuan respectively. The most important upgrade to Wei's new Blue Mountain this time is the addition of lidar. At the same time, the car is also Great Wall Motor's first model to support the Touchless NOA. It is equipped with a Coffee Pilot Ultra smart driving system, which can achieve a large end-to-end smart driving model. After the launch of Weipai's new Blue Mountain, Weipai sold 6,486 vehicles in October, an increase of 187.5% over the previous year. Among them, the new Blue Mountain sold 6,180 vehicles in October, up 204.1% year on year, and sold more than 6,000 units for 2 consecutive months. Its outstanding product strength is expected to continue to provide a significant increase in Weipai's sales.

Overseas sales continue to reach record highs, and the global layout is getting better

Great Wall Motors sold 0.369 million vehicles overseas from January to October 2024. Overseas sales in October were 0.044 million vehicles, up 25.7% year over year. The company has 3 automakers and a number of KD plants overseas. At the end of October, Great Wall Motor's regional distribution center in Queensland, Australia was officially put into operation. It aims to enhance collaboration capabilities with dealers by optimizing spare parts inventory and logistics efficiency. For parts shipped in the first month, the waiting time for user parts was shortened by more than 3 days, the same-day delivery completion rate of orders reached 90%, and the 24-hour delivery rate within the region was 85%. The company's global layout is improving, which is expected to help overseas sales continue to increase.

The face of strategic cooperation is intelligent, and intelligence accelerates progress

On September 27, Great Wall Motor and Facbi Intelligence signed a strategic cooperation agreement. The two sides will carry out in-depth cooperation on the R&D and application of large model technology in the automotive field. The purpose of this cooperation between the two sides is to focus on Great Wall Motor's AI big model technology and data accumulation, to integrate and innovate products with Great Wall Motor's multiple technology stacks using the full stack capabilities of Big Wall Motor to develop and apply large models on the end side, accelerate the implementation of Great Wall Motor's big model technology in the automotive field, and provide new technical impetus for the development of Great Wall Motor's smart mobility and user services. Facing the era of AI defining automobiles, Great Wall Motor is comprehensively promoting the AI field to empower enterprises and vehicles.

Investment advice: We expect the company's net profit to be 12.92/17/18.97 billion yuan in 2024-2026, maintaining a “buy” rating.

Risk warning: Sales of new models fall short of expectations, high-end models fall short of expectations, and increased market competition.