Written by | Fiesta ST
Edit | Ya Lan
The day before the five-day holiday, the A-share market, which had been weak for a long time, ushered in a long-lost Yangchun. At the same time that the Shanghai Composite Index returned to 3,000 points and the Shenzhen Composite Index regained its 11,000-point mark, the figure of an old state-owned car company was particularly eye-catching...
This figure belongs to Changan Automobile. On April 29, Changan Automobile opened with a strong rise and stop, and its stock price stayed at 10.47 yuan before the long holiday close, with a total market value of 79.9 billion yuan.
Where did Changan Automobile win?
Explosive models boosted sales growth, and Changan's "report card" in the past ten months is very good
The most critical reason for Changan Automobile to lead the A-share market is that Changan Automobile has just released a series of good news - on the evening of April 27, Changan Automobile announced its 2021 annual report, the company achieved operating income of 105.142 billion yuan, an increase of 24.33% year-on-year; net profit after deduction of non-profit of 1.653 billion yuan, an increase of up to 150.85%; on the evening of April 28, Changan Automobile announced the first quarter of 2022 performance report, the first three months of this year, Changan Automobile achieved operating income of 34.576 billion yuan, an increase of 7.96% year-on-year and 33.28% month-on-month; net profit after deduction of non-attributable to the mother is expected to be 2.270 billion yuan, an increase of 215.24% year-on-year, and earnings per share of 0.59 yuan.
The data of the two financial reports may be a bit boring, but the signals shown in them are not only clear and strong, but also give Changan Automobile's shareholders and even the entire Chinese auto market a shot in the arm. In 2022, under the repeated impact of the new crown epidemic and the international situation, Changan Automobile's profit in only 3 months exceeded that of the whole year of 2021.
Almost at the same time as the stock rose and fell, Changan Automobile held a "2021 annual performance briefing" on the afternoon of April 29, at which Changan Automobile explained the company's 2021 annual and 2022 first quarter performance, and made plans and prospects for future development.
"The accelerated growth of operating income and the continuous improvement of profitability are inseparable from Changan Automobile's continuous satisfaction of user needs over the years, continuous enrichment of product genealogy, and continuous product renewal, which also makes Changan Automobile enter the fast lane of development with both scale and efficiency, showing a gratifying scene of both production and sales." Changan Automobile said that it achieved double growth in revenue and profit, thanks to the growth of sales in various segments of Changan Automobile.
It is not easy for Changan Automobile to achieve such results. Since the second half of last year, under the repeated impact of "lack of core and less electricity" and the epidemic, resource supply assurance has become the core work of the entire automotive industry, and Changan has fought the epidemic, grabbed materials, went all out to ensure market demand, and successfully stabilized production and marketing.
Chang'an has blossomed in the past year. In 2021, Changan Automobile sold 2.301 million units in batches, an increase of 14.8% year-on-year, achieving stable growth for three consecutive years; the market share reached 8.8%, an increase of 0.8 percentage points year-on-year, ranking fourth in the industry, an increase of 1 place year-on-year. In particular, the growth momentum of the autonomous sector is strong, among which the Changan passenger brand hit a record high, with sales of 966,000 vehicles, an increase of 20% year-on-year; auchan brand scale returned to 200,000 units, an increase of 49% year-on-year; new energy vehicle sales exceeded 100,000 units for the first time, an increase of more than 200%; overseas market batch sales of 104,000 units, an increase of 114%.
Changan's progress in the level of independent brands in recent years can be seen for all to see, and the explosive models are one after another. CS75PLUS, Yidong PLUS, the second generation of CS55PLUS have quickly become explosive products in their respective market segments after the listing; UNI sequence has also gained a double harvest of word of mouth and sales, sales have exceeded 230,000 vehicles, UNI-K iDD, UNI-V and other new cars have a strong momentum.
On the other hand, Changan Ford has also come out of the trough of previous years. In 2021, Changan Ford's sales increased by 20.9% y/y to 305,000 units, with annual operating income of 61.765 billion yuan and annual net profit of 2.284 billion yuan. In particular, it is worth mentioning that the localization of the Lincoln brand has become a model for luxury brands in recent years - in the past year, the Changan Lincoln brand has sold 89,000 vehicles in the whole year, doubling sales. The Lincoln luxury model, which has more profitable bicycles, has allowed Changan Ford to achieve a significant increase in profitability in 2021.
People often say that state-owned car companies are accustomed to holding the thighs of joint venture brands and not thinking of making progress, and independent brands basically have not achieved much. Only Changan Automobile has not only achieved brilliant results in its independent business, but also continued to perform steadily in the joint venture market. Chang'an has made efforts to lay the foundation for "Chang'an" for the future.
From products to brands, Changan has launched a battle of transformation
Boasting about its achievements in the past period of time is obviously not the purpose of Changan Automobile to hold this performance briefing. Chang'an's wild hope lies more in the future...
Changan Automobile, which has transformed from a veteran military enterprise, has always had the corporate gene of innovation and change. In 2017, Changan Automobile released the third entrepreneurship - innovation and entrepreneurship plan, accelerated the transformation to an intelligent low-carbon travel company, accelerated its move towards a world-class car company, and released the new energy strategy "Shangri-La Plan" and the intelligent strategy "Beidou Tianshu Plan", and the third entrepreneurship has been iterated to version 5.0 so far.
Today, Changan Automobile's goal is to "transform into an intelligent low-carbon travel technology company, improve efficiency and software capabilities as its core competitiveness, and build itself into a 'new car + new ecology' industrial company." After clarifying the big development strategy, Changan Automobile has set a step-by-step development goal - by 2025, the total sales volume will reach 4 million vehicles, of which 3 million are Changan brand vehicles, and new energy sales will reach 1.05 million units, accounting for 35%; by 2030, Changan Automobile's sales will reach 5.5 million vehicles, of which Changan brand will reach 4.5 million vehicles, new energy sales will reach 2.7 million units, accounting for 60%, and overseas sales will account for 30%; and Changan will achieve carbon peak in 2027. Achieve carbon neutrality by 2045.
At the same time, the challenges facing Chang'an are also not small. From Tesla to "Wei Xiaoli", the new car-making forces have gradually become an important force that cannot be ignored in the Chinese car market from an alternative player who is not optimistic. For now, Changan is still a traditional brand based on fuel vehicles, and from the perspective of sales, new energy is still an area that Changan needs to make urgent efforts.
In 2025, Changan will achieve sales of 1.05 million new energy vehicles, which means that in the next three years or so, Changan will leap from the 100,000 level to the 1 million level. If the blueprint cannot be turned into reality, the future of Chang'an is still difficult to say "stable".
In the past April, Changan Automobile has continuously sounded the sprint bell on the road of transformation. On April 13, at the 2022 Changan Automobile Global Partnership Conference, Changan Automobile revealed a series of key information. According to the plan, Changan Automobile Group will launch 36 new products in 2022, and 19 new products of its own brands will be accounted for. Among them, 9 are brand new products and 10 are new products. In this lineup of 19 new products, new energy products account for 8 models. In addition to the second-generation CS75PLUS, UNI-V, UNI-K iDD and other models that have been launched in the first quarter, Changan Automobile will also launch the second-generation CS55PLUS, UNI-K, UNI-T and other models this year, and the mainstream passenger car products will be as many as five models.
Changan Deep Blue's first model (code C385)
In terms of new new energy products, Auchan Z6, the first model of Auchan Automobile's new product line, the new micro-electric vehicle Changan LUMIN (Glutinous Rice), the first model of the new digital pure electric brand Changan Deep Blue (code name C385), and the first model jointly created by Changan, Ningde Times and Huawei, Avita 11, are expected to be listed in the second half of the year.
In addition, the new digital pure electric brand is officially named "Changan Deep Blue", and the UNI product sequence is determined to achieve brand operation... From products to brands, from technology to marketing, Changan Automobile has played one "trump card" after another, full of confidence and determined to win!
Changan Automobile will electrify and build platforms for all series of products, such as Changan New Energy will rely on the EPA architecture to create entry-level and mid-range products, and Avita's CHN platform will be jointly built by Changan, Huawei and CATL. At the same time, Changan Automobile will optimize the strategy and positioning of the Changan UNI, Changan Passenger Vehicle, Auchan and Kaicheng brands, and will also make a comprehensive transformation to electrification and electrification in the future.
At the technical level, Chang'an is also continuing to accumulate. Changan publicly stated that it will "further consolidate the core technical capabilities of new energy vehicles", including continuing to strengthen the integrated design of energy consumption, reduce the energy consumption of the whole vehicle, and reach the industry-leading level; break through the 800V high-voltage technology, match the high-rate fast charging core on the 800V electric drive platform, and achieve a charging range of 150-200 kilometers for 5 minutes; break through the integrated technology of the battery chassis and accelerate the research and development and industrialization of solid-state batteries; in the field of hydrogen fuel cells, Changan is also striving to create "low hydrogen consumption, high energy efficiency, and high safety." "Fuel cell technology and products.
【Conclusion】
"Chinese car brands are no longer bystanders or simple followers, but have become runners and even leaders." Zhu Huarong, chairman of Changan Automobile, said that he was very loud.
In the context of the increasingly fierce competition for new energy vehicles in China, in the next ten years when Chinese brands must sail to the sea, it is worth looking forward to whether Changan Automobile can successfully transform and stand out. Under the wave of "new four modernizations", increasing research and development has become the consensus of the industry, and the pace of Changan Automobile is solid and firm.