Great Wall Motor (601633): June sales increase against trend, product cycle remains strong

Great Wall Motor (601633): June sales increase against trend, product cycle remains strong
Event: The company released June sales data. The overall sales in June were 63,299 units, an increase of 1 each year.8%, 49 sales in the first half.40,000 vehicles, an increase of 4 per year.7%. Wholesale sales increased against the trend, and the main vehicles performed outstandingly.According to the data of the China Federation of Passenger Unions, the retail volume of passenger cars increased by 4 in June.9%, considering that the company is in the new car cycle and last year’s retail sales base decreased, it is expected that the company’s longer retail data in 6 months is far better than the industry.From the perspective of the wholesale side, the industry is still in the destocking stage in June, and passenger cars are wholesale up and down each time.9%, the company’s wholesale sales in the same period achieved 上海夜网论坛 contrarian growth, of which the Haval brand further increased by 7.4%, meanwhile, the company’s current inventory coefficient is expected to be low.In terms of different models, the H6 achieved 27,052 sales, an increase of 2 per year.9%, F7 sales of 10128 vehicles, M6 sales of 2,433 vehicles, maintained low for two consecutive months, is expected to be listed on the national six models, sales will quickly recover.Sales of the Euler brand were 3762 units, of which R1 was 3198 units. The operation continued to improve, and sales performance is expected to continue to transform the industry.In the short term, the inflection point of the industry is gradually approaching. In the long term, we judge 2019?The compound sales intensity of the company in 2021 is 14.8%, significantly profitable industry.Mainly based on the following 武汉夜生活网 reasons: 1. The large single product has changed to multiple lines and ushered in the new product cycle, and the product competitiveness has continued to increase. At present, four traditional car lines, M, H, F, and WEY, are formed, of which the F series has outstanding sales performance after listing; 2The technical reserve supports the differentiated layout, and the company’s national engine reserves are complete, helping the company’s products to complete the smooth switch from national five to national six.At the same time, the new platform will be launched at the end of 2019 to provide consumers with more rich motivation options; 3. Continuous marketing improvement: starting from 2018, gradually dating marketing talents to replace the company’s shortcomings in marketing. Earnings forecasts and investment advice.The company’s EPS for 2019-2021 is expected to be 0.61/0.75/0.93 yuan, the composite performance of the next three years is 17.8%, maintain “Buy” rating. Risk reminder: macroeconomic downturn, the automobile industry’s production and sales are less than expected, and the slow progress of new car listing and other risks.