Event: The company released the November production and sales report: wholesale sales volume was 0.127 million vehicles, +3.7% year over year, and +9.1% month over month. In January-November, a total of 1.098 million vehicles were sold, -1.8% year-on-year. Among them, Haval sold 0.078 million vehicles, +4.5% year-on-year and +7.9% month-on-month; in January-November, a cumulative total of 0.623 million vehicles were sold, -4.1% year-on-year. Wey brand 0.007 million vehicles, +145.9% year over month, +8.6% month on month; cumulative wholesale of 0.046 million vehicles from January to November, +20.6% year over year. 0.016 million pickup trucks, -2.7% YoY, +23.0% month-on-month; cumulative wholesale of 0.161 million vehicles in January-November, -13.7% YoY. Euler 0.006 million vehicles, -42.1% YoY, +4.4% month-on-month; cumulative wholesale of 0.059 million vehicles in January-November, -40.6% YoY. 0.02 million tanks, +8.7% year-on-year, +5.6% month-on-month; cumulative wholesale of 0.209 million tanks in January-November, +44.0% year-on-year.

Tank sales increased year over year, and Haval sales were stable. The company sold 0.127 million vehicles in November, +3.7% year over year and +9.1% month on month. In January-November, the total wholesale volume of 1.098 million vehicles was -1.8%; by brand, tanks sold 0.02 million vehicles in November, +8.7% YoY, +5.6% month-on-month; in January-November, the cumulative wholesale volume was 0.209 million vehicles, +44.0% YoY. Haval's sales increased month-on-month in November, with wholesale sales of 0.078 million vehicles, +4.5% year-on-year and +7.9% month-on-month; in January-November, a cumulative total of 0.623 million vehicles were sold, -4.1% year over year. On the high-end side, models over 0.2 million yuan sold 0.031 million units in November, +36.7% compared to the same period last year. With the popularity of Great Wall's new Weipai Blue Mountain, the company is expected to reshape its high-end brand image and open up profit space.

Overseas sales continued to grow year on year, and globalization progressed steadily. In November, the company's overseas wholesale sales volume was 0.043 million vehicles, +21.7% YoY and -2.8%, a record high; in January-November, overseas wholesale sales volume was 0.412 million vehicles, +45.8% YoY. In November 2024, the GWM brand was launched in Colombia. We believe that the company's fuel and hybrid products have high-quality product capabilities and are highly competitive in overseas markets. I am optimistic that the accelerated expansion of the company's overseas layout will lead to a continuous increase in sales volume.

“Intelligent+off-road” strength highlights the steady development of the high-end market. In November, Great Wall Motor and Huawei signed an “Intelligent Ecosystem Cooperation Agreement” to cooperate based on Coffee OS 3 and HMS for Car. In December, the 500Hi4-Z tank officially began pre-sale. It is equipped with a new decoupled four-wheel drive plug-in hybrid Hi4-Z platform. Under WLTC conditions, the pure electric range exceeds 200 km, and it also supports fast charging technology of up to 163 kilowatts. 15 minutes of charging can increase the pure electric battery life by 120 kilometers. 2024 is the first year of urban assisted driving. The company is expected to seize the opportunities of technological change and increase sales through advanced intelligent technology and product capabilities.

Investment suggestions: The promotion of the company's new products at home and abroad is progressing smoothly, a new cycle of intelligent electrification has begun, the proportion of new energy intelligent models has increased rapidly, and the high-end intelligent route is becoming more and more clear. The estimated revenue for 2024-2026 is 202.91/247.15/271.86 billion yuan, and net profit to mother is 13.16/16.07/17.98 billion yuan, corresponding to the closing price of 27.77 yuan/share on December 3, 2024, PE is 18/15/13 times, maintaining the “recommended” rating.

Risk warning: downside risks in the car market; competition in the market where brands such as WEY and Haval are located has intensified, and sales fall short of expectations; overseas progress falls short of expectations and risks related to EU tariffs.