Great Wall Motor (601633): The third quarter will be the time when Great Wall’s single-quarter profit returns to high growth (Pacific Motor’s 2019 strategic recommendation)

Great Wall Motor (601633): The third quarter will be the time when Great Wall’s single-quarter profit returns to high growth (Pacific 重庆耍耍网 Motor’s 2019 strategic recommendation)
Sales continue to surpass the industry, and high single-quarter profit growth can be expected.After the sales volume in the first seven months continued to surpass the industry, we expect that the profit of Great Wall will return to high-speed growth starting in the third quarter. In the third quarter of last year, Great Wall Motor’s single-quarter net profit attributable to its mother was only 2.300 million, and Great Wall Motor in the third quarter of this year is worth looking forward to both in terms of sales and bicycle profits.As for the profit of bicycles, after the completion of the switching of the National Five, the National Six, and the entire industry, the discount intensity of the entire industry is continuously narrowing. In the second quarter, Great Wall Motors ‘bicycle profit has begun to recover continuously, and the third quarter is expected to go even higher. Pickup sales rose month-on-month, and high-end artillery launched a new pickup truck strategy.At present, the sales of pickup trucks, which have a higher contribution to bicycle profits, have started to increase month-on-month in July. The conversion of the country’s sixth-generation model has been in place, and the launch of high-end pickup trucks “Cannons”. Pickup truck sales in the third quarter are expected to increase sequentially in the second quarter.In addition, Great Wall has released a new “1-2-2-3” strategy for pickup trucks, that is, to maintain domestic sales, and export sales are absolutely number one; by 2020, annual sales will exceed 200,000; by 2025, cumulative global sales will exceed 3 million.Pickups will also bring greater highlights to the company. The high-end brand WEY can be expected in the future.Cumulative sales of high-end WEY brands exceeded 270,000, and word-of-mouth and brand gradually settled. VV6 continued to maintain zero sales.4-0.Between 50,000 units, VV7 and VV5 remain at 0.About 150,000 units. With the addition of more headlights through the 2020 VV6 and the deployment of technology films such as the Shepherd’s full-dimensional security system, the product power has further improved, and sales are expected to reach a new level.The steady and positive trend of the WEY brand is clear, and there will be a major breakthrough in improving long-term profit. Investment suggestion: When the recovery of passenger cars is expected to continue to increase, after the Great Wall ‘s sales increase in the first half of the year, the market share will rise against the trend, and the profit growth rate in the second half will also be worth looking forward to!Pacific Motors continuously recommends Great Wall Motors. In the future, Great Wall Motors sales are expected to continue to surpass the industry. We expect the company’s net profit attributable to its mothers to be 4.5 billion / 5.5 billion in 19/20 years, and maintain a Buy rating. Risk reminder: The sales volume of the automobile industry is lower than expected, and the price reduction promotion is larger than expected