Event: The company released production and sales data for July 2024. In July, the company sold 0.091 million vehicles (-16.3%), 0.038 million units (+41.4%) in overseas markets, and 0.024 million units (-16.5%) of new energy vehicles.

Overseas sales continued to grow, and tanks performed well. In July, the company sold 0.091 million new vehicles (-16.3%), 0.038 million units (+41.4%) in overseas markets, and 0.024 million new energy vehicles (-16.5%).

From January to July, the company sold 0.651 million units, up 3.6% year on year, sold 0.24 million units in overseas markets, up 58.8% year on year, and sold 0.157 million units of new energy vehicles, up 28.1% year on year, with significant growth in overseas markets. Judging from the sales situation of various brands, the Haval brand sold 0.053 million units (-15.9%), the WEY brand 2,765 units (-58.4%), the tank brand 0.019 million units (+38.5%), the Euler brand 4780 units (-52.8%), and the Great Wall pickup truck 0.012 million units (-24.1%) in July. In January-July, the Haval brand sold 0.353 million units (-0.8%), the WEY brand 0.023 million (-8.8%), the tank brand 0.135 million (+87.6%), the Euler brand 0.037 million (-36.4%), and the Great Wall pickup truck 0.104 million units (-12.2%). The report “China's Automobile Value Preservation Rate for the First Half of 2024” was released. The Tank 300 was at the top of the compact SUV list; the cumulative sales volume of the Tank 400 Hi4-T exceeded 0.03 million units; and the Tank 500 Hi4-T received the China Automobile Health Five-Star certification.

Weipai Blue Mountain has been intelligently refreshed, and multi-brand products are continuously optimized. The new Blue Mountain integrates Great Wall Motor's next-generation smart driving system Coffee Pilot Ultra, the smart space system Coffee os 3, and a four-speed Hi4+ CDC electronically controlled suspension. At the Chongqing Test Drive Conference, 150 media experienced the new Blue Mountain and praised its intelligence; the new Blue Mountain visited Chengdu and successfully coped with complicated road conditions during the live broadcast on rainy days. The 2024 Haval Raptor focuses on new trends, new taste, new attitude, new off-road, new experience, and new intelligence to achieve the three major advances in aesthetics, scene, and technology. All Tank 500 series OTA upgrades make travel more fun, more energy efficient, and more efficient. In terms of pickup trucks, models such as the 2.4T Great Wall Gun and King Kong Cannon 8AT continue to strengthen their market advantages and continue to lead the upward leap in value of the Chinese pickup truck category.

Various models have been launched overseas, and “ecological going overseas” continues to accelerate. Great Wall Motors sold 0.038 million units overseas in July, up 41.4% year over year. Tank 500 is sold in Chile; Tank 300 is sold in Malaysia and Azerbaijan; Haval Big Dog is sold in Uzbekistan. Various brands such as Haval, Tank SUV, and Euler were showcased at the Jakarta Auto Show in Indonesia. In terms of channel expansion, the supermarket car experience center model was introduced to Kazakhstan for the first time.

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”. Great Wall Motor will continue to adhere to the long-term principle, develop a global strategy with superior technology research and development, a better capital chain and industrial ecology, lock in an intelligent new energy circuit, and build a more remarkable global core competitiveness. The estimated net profit for 24-26 will be 11.54/14.59/17.72 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.