After thousands of calls, she came out shyly. Daniel stock Geely Automobile (00175), which has soared seven times in more than a year, finally announced its mid-2017 results. According to Fortune Information, Geely's revenue in the first half of the year increased by 118% to 39.4 billion yuan (the same as below). Net profit surged 128% to 4.34 billion yuan.
Geely's performance exceeded expectations
In the first half of the year, Geely Automobile's total sales in China rose 95 per cent year-on-year to 526700, while export sales fell 64 per cent to 3848. The group sold a total of 530600 cars, an increase of 89% over the same period last year. In addition, gross profit margin increased further due to increased sales and improved product mix.
Prior to this, Geely Automobile issued a medium-term positive profit forecast on July 10. Compared with 1.91 billion yuan of net profit in the first half of 2016, net profit in the first half of 2017 is expected to grow by more than 100%. At present, it is up 128% in real terms, exceeding expectations.
Cars sell well and have always been the basis of long cattle.
So far, Geely has reported sales for the first seven months of 1.1 million, with cumulative sales of 621000 vehicles, up 89 per cent from a year earlier, making it the largest listed car company to meet its target of 57 per cent for 1.1 million (Geely raised its sales target of 1 million to 1.1 million in July).
Geely's sales began to boost in the second half of last year, launching a number of new models and superimposed purchase tax incentives. Geely's sales reached 765000 vehicles in 2016, up 50 per cent from the same period last year. Sales remained strong at the start of the year, and Geely's sales continued to rise in June, reaching 91100 in July, with the launch of the new car Vision X1 and upgrades of several models after a month-on-month decline in May.
According to Fortune Information, Geely management has said many times that it will not subsidize consumers when the purchase tax discount is halved. At present, it seems that there are still such beautiful sales in the first seven months of this year, indicating that Geely Automobile is very popular.
This is in sharp contrast to Geely's "happy enemy" Great Wall Motor (02333), which held the biggest promotion in history, "1 billion Red packets Promotion" in March this year, which has achieved the goal of destocking. The growth rate of sales of the Great Wall has slowed sharply this year, and even total sales fell by 8.08% and 3.76% in April and May.
The huge difference in sales between the two is also reflected in the share price, which soars as sales soar, while Great Wall goes up and down.
Two important expectations of Geely in the future
Expectation 1: sales will improve and performance will be bullish.
Geely sales soared, mainly because the major models are very popular in the market, for example, July data, Geely model sales are very balanced.
New Dihao, Vision sedan, Boyue, Dihao GS, etc., monthly sales of more than 10, 000, the best-selling model Boyue SUV sales reached 21800, has been more than 20, 000 months in a row.
This is also in sharp contrast to the fact that the Great Wall relies solely on miraculous cars H6 and H2 to boost sales.
As sales continue to rise, Geely's performance will continue to be bullish, so the annual report will continue to look good, which is one of the important expectations.
Expectation 2: the high-end brand Lecker supported by Volvo will be listed soon.
Some people say that buying Geely is to some extent buying Volvo, because Geely Holdings, Geely's parent company, formally acquired luxury brand Volvo in 2010. This is not without reason. Geely is the best car company that absorbs the technology, experience and management of foreign car companies. at present, many Geely models of the same class are ahead of other car companies in performance, intelligence and other aspects.
Among them, Geely will be listed in the fourth quarter of the high-end brand LYNK & CO, the market is generally optimistic that Geely will succeed in the middle and high-end brands. First of all, because Lectra is endorsed by the luxury brand Volvo, Lectra is based on the CMA platform of Volvo midsize cars, where the new generation of Volvo V40 was born and will be manufactured jointly with Volvo (Taizhou plant). And these points are incomparable to other domestic brand car companies.
Secondly, Lectra's innovation in sales and after-sales mode. It is understood that in the future, Lectra will provide a transparent price system and order system to reduce the intermediate price difference and benefit consumers, and at the same time achieve "door-to-door service" in pre-sale and after-sale links. In addition, Lectra promises to provide consumers with services such as lifelong free warranty, lifelong free road rescue and lifelong free data flow.
This is also one of the important reasons why the major securities firms and banks are generally optimistic about Geely.
It is worth mentioning that due to its excellent growth, Geely's share price has risen more than 7 times in a year and a half, but Geely's valuation is also the highest in Hong Kong listed car companies, according to relevant data, Geely's PE is 29.3 times.