Firmly "do more" Great Wall Motors to meet a stronger product cycle

In the era of electrification and intelligence, it is not polite to say that China's automotive industry is leading the trend.

The hottest automaker in 2021 is Not Great Wall Motors, under the influence of unfavorable factors such as unstable supply chains and rising raw material prices, it is not easy for Great Wall Motors to grow against the trend. Next, let's take stock, what is the level of strength of Great Wall Motors? How will we surpass ourselves in the future? Can you stand in the C position and move on?

In 2021, the sales volume exceeded 1.28 million

In the past one and a half years since the beginning of the rebirth of the transformation and the clear transformation goal to a global intelligent technology company, Great Wall Motors has achieved remarkable results, handing over a satisfactory answer sheet in 2021 and achieving more than one million sales for six consecutive years.

On January 23, Great Wall Motor (stock code: 601633. SH, 02333.HK) released its 2021 results report. In 2021, Great Wall Motor's total operating income was 136.317 billion yuan, an increase of 31.95% year-on-year, net profit was 6.781 billion yuan, an increase of 26.45% year-on-year, and the average selling price of bicycles exceeded 106,400 yuan, an increase of 14.50% year-on-year.

Behind this, it is the result of Great Wall Motors accurately grasping the general trend and continuously releasing the potential energy of the product matrix.

Throughout 2021, Great Wall Motor sold more than 1.28 million new vehicles, an increase of 15.2% year-on-year, exceeding one million sales for six consecutive years and hitting a record high. Among them, in December 2021, 162,369 new cars were sold, an increase of 8.2% year-on-year and 32.5% month-on-month, and its brands undoubtedly have the potential to explode, and sales have improved month-on-month.

Great Wall Motor's sales volume in 2021

As one of the main forces of Great Wall Motors, Great Wall Pickup trucks have maintained the first place in domestic and export sales for 24 consecutive years, and the market position is stable, among which a number of new cars of great wall cannons have made stunning appearances and are in the limelight.

Great Wall Pickup sold 233,006 units in 2021, an increase of 3.6% year-on-year, of which 25,033 units were sold in December alone, an increase of 15.7% year-on-year, and the cumulative sales exceeded 20,000 units in 16 months. The 2021 Global Edition of Great Wall Gun, artillery, black bullet, brigade gun, locomotive gun, etc. have been listed in more than 50 countries and regions on four continents around the world, and have become a Chinese brand that has obtained a five-star rating under the latest australian ANCAP standard, fully opening a new era of globalization of Great Wall pickup trucks.

Dongxing Securities believes that "in 2021, Great Wall Motors sold more than 1.28 million vehicles, mainly due to the company's reform of the underlying structure, the company's positioning shifted from 'automobile manufacturing enterprises' to 'user service operation enterprises', and the business model changed to 'product + software + services', laying the foundation for its effective mining of market demand." ”

In 2021, Great Wall Motors reshaped its organizational mechanism and created a 3.0 version of the organizational structure of "strong backstage, large middle office, and small front desk". In The view of Bedojun, the 3.0 organizational structure can accurately and agilely link users and form a new synergy effect. At the same time, under the impetus of the new phase of the equity incentive plan, it can effectively improve the construction of talent echelons, strengthen the internal mobility of employees, activate the potential of employees, and ultimately greatly improve the operational efficiency of enterprises.

Great Wall Motors quickly moved from "bigger" to "long", far exceeding market expectations. In 2021, Great Wall Motors launched a number of replacement and new models such as Haval Red Rabbit, Haval Divine Beast, Wei brand Maqiduo, Wei brand latte, Wei brand mocha, tank 300 city version, tank 500, Euler Good Cat GT, etc., and built a category brand with category leadership, promoted the establishment of tank brand and the global debut of salon cars, while meeting the differentiated travel needs of users, but also set a record for the annual car companies to release new products.

This also just confirms what the capital market researcher said, "In the past, the idea of valuation was to make big single products and bigger brands, and now the valuation idea is to do more brands and more single products, and in terms of products, brands and user operations, Great Wall Motors does go very fast." ”

Bei Duojun believes that the trend of "going long" of Great Wall Motors will continue, and it will continue to accelerate the launch of new models in the future, which is expected to usher in a stronger product cycle. At present, Great Wall Motors has determined the models that will be listed in 2022: In terms of the Euler brand, the ballet cat will be listed in the first quarter, the punk cat and the lightning cat will be listed in the second quarter, further enriching the company's product matrix in the field of pure electricity and rapidly moving towards high-end; Weipai, the Mocha DHT-PHEV equipped with lemon hybrid DHT has opened pre-sale on January 14, 2022, and the latte DHT-PHEV will also be listed in the first quarter, and the retro tide driving "Dream Realization" will also be launched within the year.

Of course, Great Wall Motors has also established a new business model of "product + software + service", and unlike the user operation method of Internet companies, Great Wall Motors has placed "users" in a central position, promoted the transfer of the value chain to the back end, and continuously created value for users, which will surely become a new value growth point for enterprises.

In addition, while sales in the domestic market are rising steadily, Great Wall Motor's overseas business has also begun to accelerate its development. In 2021, 142,793 units were sold overseas, up 103.7% year-on-year, accounting for 11.1% of sales. In 2021, the Rayong plant in Thailand will be officially put into operation, the acquisition of the Plant in Iracemapolis, Brazil, the appearance at the Munich Motor Show, and the official opening of the European market journey. With the release of the Thailand and European market strategies, Bei Duojun is still looking forward to the sales of Great Wall Motors in overseas markets in 2022.

Hydrogen energy, pure electricity, hybrid full bloom

As one of the enterprises with the widest layout of China's new energy industry chain, Great Wall Motors has accelerated the layout of new energy technology and harvested a lot in 2021.

In December 2021, Great Wall Motor sold 22,354 new energy vehicles, and 1-12 cumulative sales of 136,953 units, accounting for 10.7% of the total sales, all of which hit a record high, and in absolute terms, it is ahead of Wei Xiaoli. Since July 2021, Euler has seen sales climb steadily, selling 20,926 models in December, exceeding 20,000 for the first time. Wei brand series, Macchiato sales steadily climbed, latte DHT set intelligent technology and efficient power in one, since the listing on December 17 has reached 2707 units, the whole series of single month sales of 10065 vehicles, is expected to become the backbone of the coffee family.

In the era of new energy, intelligence, carbon neutrality and other words appear in the automotive industry, Great Wall Motors has a comprehensive layout in hydrogen energy, pure electricity and hybrid. In The view of Bei Duojun, relying on the two legs of "fuel vehicles + new energy" to walk, Great Wall Motors is bound to go more and more steadily, faster and faster.

In the field of hydrogen energy, in March 2021, Great Wall Motors released a hydrogen energy strategy to establish an integrated supply chain ecology, followed by the release of vehicle-level "hydrogen power system" full-scenario solution - hydrogen lemon technology - which has also become the technical core of Great Wall Motor's hydrogen energy strategy.

In the field of pure electricity, in August 2021, Great Wall Motor's world's first cobalt-free battery pack was mass-produced and loaded, marking an innovative breakthrough in the research and development of material base by Chinese lithium battery companies; in September, Great Wall Motor officially released Dayu battery technology, which can ensure that there is no fire and no explosion in the normal use life cycle to enhance the safety of power batteries to a new height in the industry.

In the field of hybridization, Great Wall Motors has taken the lead in launching the dual-motor hybrid technology in China - lemon hybrid DHT, lemon hybrid DHT, and is expected to release the second generation of "lemon hybrid DHT" in 2023, through the engine thermal efficiency upgrade, hybrid system configuration and parts optimization, the performance is further greatly improved.

Of course, Great Wall Motors' "ambitions" are far more than that. Great Wall Motor aims to achieve an annual global production and sales of 4 million vehicles by 2025; of which new energy accounts for 80%. On this basis, Great Wall Motors will continue to "invest heavily in research and development", and the cumulative R&D investment will reach 100 billion yuan by 2025, jointly promoting the rapid and steady transformation of Great Wall Motors to the field of electrification.

In this regard, Dongxing Securities believes that the accumulation of new energy technology of Great Wall Motor is closely related to the high recognition of new model terminals and the steady advancement of the new car cycle.

In The view of Bei Duojun, Great Wall Motors' technology and product layout in the field of new energy are gradually releasing huge brand potential, which will further consolidate the future competitiveness of Great Wall Motors.

Keep a close eye on the direction of the industry

According to data from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in mainland China in December 2021 were 518,000 units and 531,000 units, respectively, an increase of 120% and 113.9% year-on-year, and an increase of 6.7% and 11.1% respectively. In 2021, the cumulative production and sales were 3.545 million units and 3.521 million units, respectively, an increase of 159.5% and 157.5% year-on-year, respectively.

By model, new energy passenger vehicles sold 498,000 units in December, up 120.6% year-on-year and 10.3% month-on-month, of which EV and PHEV sold 416,000 units (up 120.5% year-on-year and 16.0% month-on-month) and 82,000 units (up 121.6% y/y and 11.7% m/m) and 33,000 new energy commercial vehicles sold 33,000 units, up 46.6% year-on-year and 24.9% month-on-month. In December, new energy vehicles exported 18,000 units, +20.1% year-on-year, and in 2021, the cumulative export of new energy vehicles was 310,000 units, +304.6% year-on-year. Considering the continued high prosperity of the new energy automobile industry, the China Automobile Association predicts that sales will reach 5 million units in 2022.

Huaxi Securities believes that "the global new energy automobile industry as a whole presents the dual characteristics of 'electric acceleration + intelligent opening', the trillion-level market is opened, traditional car companies are actively transforming, new car-making forces, and technology Internet companies (Huawei, Baidu, Xiaomi, etc.) are accelerating their entry into the market to promote the prosperity and development of the industry."

In terms of electrification, Great Wall Motor's Dayu battery technology was released, and a number of patents were opened to the whole society free of charge to ensure the safety of global users with the greatest range; cobalt-free battery packs were mass-produced and loaded, promoting the new trend of cobalt-free power batteries; and Great Wall Motors' "Beyond - Shenzhou 200" high-power fuel cell engine and other technical products were unveiled to accelerate the commercialization of hydrogen energy.

In terms of intelligence, Great Wall Motors continues to increase investment efforts, focusing on intelligent driving, intelligent cockpits, and intelligent services, and establishing full-stack self-research capabilities, so that cars can become future travel partners that can think, judge and grow sustainably, and realize the evolution and upgrading from "perceptual intelligence" to "cognitive intelligence".

With the establishment of Millima Zhixing, Great Wall Motors already has four intelligent organizations: Product Digitalization Center, Millima Zhixing, Xiandou Intelligence, and Nuochuang Technology. In addition, in February 2021, Great Wall Motors completed its strategic investment in Horizon, the industry's leading automotive intelligent chip company, marking Great Wall Motors' official entry into the chip industry.

In the face of Great Wall Motors' active efforts to be a leader in the intelligent market, "Intelligent Driving Network" said, "This is actually the innovation at the conceptual level, and it is also the starting point of enterprise change." ”

Prepare for transformation and look to new heights. In 2022, under the transformation of the global automotive industry, Great Wall Motors, which is committed to the 2025 strategy, will firmly self-change with users as the center, empower category innovation with scientific and technological innovation, and accelerate global development with new category matrix, which is expected to create a new high in enterprise development.

(Source: Bedo Finance)