AutoBeta(AutoBeta.net)04/22 Report--

On April 21, Great Wall Motor released its first-quarter results, showing that its operating income in the first quarter of 2021 was 31.117 billion yuan, an increase of 150.62 percent over the same period last year, and the net profit of shareholders belonging to listed companies was 1.639 billion yuan, turning losses into profits. However, the net worth of Great Wall Motor has declined, and the net cash flow from operating activities has also fallen to 213 million yuan from 524 million yuan last year.

After the announcement of the financial results of Great Wall, a number of big banks cut their target prices. CICC lowered its target price by 14.3% to HK $30, while Citigroup lowered its target price by 30% to HK $24.9. Industry analysts said that it is the chip shortage that has led to a certain increase in the price of raw materials, while the rapid rise in the price of raw materials upstream has suppressed the net profit of Great Wall to a certain extent. As far as the current situation is concerned, the rapid rise in raw material prices and chip shortages will still have some impact on the future.

The results fell short of expectations and Great Wall's shares fell sharply today. This morning, Great Wall drove low, down more than 15% in intraday trading. As of the close, Great Wall Motor fell 12.68% to HK $21.35 per share, with a total market capitalization of HK $195.9 billion.

Data show that Great Wall sold 338800 vehicles in 2021, including 222700 Harvard, 30700 Euler, 26000 WEY and 59400 Great Wall pick-up trucks. Sales of all four brands have risen sharply as a result of the low base caused by the epidemic in the same period last year.

The year 2021 is also the product year of Great Wall Motor, and the product matrix of Great Wall Motor has been further improved. On April 19, Great Wall Motor announced that "the tank brand is officially operating independently." According to reports, the tank brand has developed two major product series: business luxury and mecha technology, including the flagship model of the tank 700 positioning machine A series and the flagship model of the tank 800 positioning business luxury series. In the future, the tank brand will launch more models, covering full-size, medium-to-large and compact SUV.

The Euler brand has also brought a number of new cars, such as the Euler Lightning Cat, the Euler Big Cat and the new Euler model similar to the Volkswagen Beetle. The Great Wall pickup also displays a variety of products such as full-size pick-up trucks, artillery, travel cannon, cross-country running, cross-country running and so on. The Harvard brand has brought the Harvard X DOG, the new concept car Harvard XY, the Harvard Dog 2.0T and other models. As for the WEY brand, the WEY mocha officially opened for pre-sale at the auto show with a pre-price of 17.98 yuan to 220800 yuan, which is expected to be delivered in November.

In addition, on the eve of the auto show, Li Ruifeng, general manager of the Great Wall WEY brand, said that the WEY brand plans to accelerate market segmentation within 2-3 years and launch a number of new models, including SUV, sedan and MPV. It also means that Great Wall will restart the car project, and the first car will belong to the WEY brand. According to Great Wall's plan, the sedan series will be launched in May this year.

At present, Great Wall Motor owns five brands: Harvard, Euler, WEY, Great Wall pickup truck and tank. There are more or less popular models in the five major brands, such as Harvard H6, Harvard Dog, Great Wall Gun, Tank 300, etc., but the sales of some models have been weak, and there are more and more products competing in the same level. It is still unknown whether these models can remain competitive in the future. However, in the context of the continuous introduction of new products, it may be possible to make up for some of the sales.

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