Great Wall Motor (601633): Selling Good Cars Down to the Ground Is King
Down-to-earth, ingenious quality creates brand reputation.The company has been adhering to a down-to-earth style since the beginning of its entry into the automotive industry. It is loyal to the main business of the automobile 天津夜网 industry, and has made in-depth arrangements for the upstream and downstream of the automotive industry chain. Core components have realized independent delivery of the vertical industrial chain to achieve dual independent controllability of cost and quality.While strictly controlling costs, quality and quality are not discounted at all. The Haval SUV brand that it belongs to always takes safety, quality and quality control as the top priority. The choice of 5 million customers represents the voice of customers, and wins a good market reputation and brand with original qualityreputation. Some target, do what is good in the ability circle.In the period when the domestic SUV market is growing and the demand is the hottest, the company strategically chose to temporarily abandon a lot of attention on cars and focus on its best long-distance SUV market. It has fully enjoyed the rapid growth of SUV market dividends.Maximize profits, and at the same time get the opportunity to cultivate internal skills, accumulate wealth and technology, and always maintain a leading position in the SUV market.We believe that this phase of the company’s strategy is extremely wise, forward-looking, able to be targeted, and do what it does best in its own ability circle. The house price is guaranteed, and the farther you go, the more you can earn.Starting from 2016, the SUV market has gradually transformed from the blue ocean market to the red ocean market. SUV products from various auto companies have increased their efforts and market competition has become more intense. At the same time, the entire auto market is also in a cyclical downward phase.Market share, sacrificing part of the profits and giving benefits to consumers. In the long run, this step is understandable and the most sensible choice now.The automobile industry is extremely dependent on the effect of scale. If there is quantity, there will be a future. In the industry’s down period, it is advisable to protect the scale in the short-term.Dividends and thus earn more. Investment suggestion: As the banner of the independent brand, the company always earns money by selling the cars down-to-earth. The F-series models have continued their strength this year. At the same time, the models continue to maintain the basic model. We expect the company to return to its net profit in 19/20 years.6031 ppm / 67.US $ 3.8 billion, currently 14 times / 12 times the corresponding 19/20 year dynamic assessment.Although the overall sales volume of the automotive industry is still sluggish, the company’s Q1 sales volume is expected to remain strong. The overall industry demand will gradually change in the second half of the year. Great Wall will become one of the independent brand leaders. Risk warning: Passenger car sales fall short of expectations, price cuts are larger than expected