Keystone

Recently, we have investigated Jiangling Motors and communicated with the management and dealers of the company. at present, the company attaches great importance to the listing of Yusheng S330, the channels of dealers are also being reformed accordingly, and the company's business is picking up obviously.

Suggestion

Yusheng S330 demand: S330 is mainly aimed at younger consumer groups, due to the compact city SUV market segment, the market space is larger. Compared with competitors, they are quite competitive in wheelbase, configuration and price, and will be officially put on the market at the end of September. The main models of S330 are between 1 million and 12 million. At present, the company attaches relative importance to Yusheng S330. We expect that in the future, under the condition of constantly improving the channel layout, the monthly sales of Yusheng S330 is expected to stabilize at about 5000 units, which will become a heavyweight model for the company to enter the passenger car SUV market.

The configuration of the Yusheng S350 is further enriched, benefiting from market segmentation: the Yusheng S350, which is equipped with a Ford 2.0T gasoline engine, was recognized by end consumers after it went on the market in June. The price difference between the current four-wheel drive and two-wheel drive versions of the Yusheng S350 has narrowed, which has also led to end-consumer recognition of the S350. although monthly sales of the S350 have reached about 2500 vehicles, there is further potential for further growth in the future. Yusheng S350 has been recognized by end users in the off-road segment of the SUV market, and will continue to benefit from the growth of self-driving leisure travel and group customer demand in the future.

Light commercial vehicles picked up in the second half of the year, Quanshun Q4 sales are expected to rise: in the second half of this year, the light commercial vehicle market is picking up, giving a boost to the company's traditional light commercial vehicle sales. Classic Quanshun will face suspension of production after more than 10 years of sales, which is expected to help Quanshun sales in the fourth quarter. Under the low base effect, the sales of the company's pickup truck has picked up obviously this year, and it is expected to benefit from the stimulation of the pickup truck going to the city in the future. in the future, after the restrictions on the entry of the pickup truck are relaxed, it is expected to replace part of the market of micro-surface and micro-card. Touruiou's automatic gear, which has attracted a lot of market attention, will be listed in the first quarter of next year, which is expected to have a positive stimulating effect on the company after the listing.

Investment advice: the company's fundamentals hit bottom and the recovery trend is obvious, and the company's future Yusheng brand SUV sales are expected to exceed expectations, which is expected to lay the foundation for the company to continue to expand SUV products; next year, the company is expected to have a number of subdivided models on the market, and R & D costs are expected to decline next year, and the company's performance flexibility will be reflected next year. Maintain the recommended rating and target price of 35 yuan / 25 Hong Kong dollars (corresponding to 14.6x/8.9x 2016e Pamp E) for Jiangling AWeiB shares.

Risk

Sales of the new model fell short of expectations.