SAIC Motor and GUANGZHOU AUTOMOBILE Group have successively launched protective actions to put aside the stock price, which is actually very good

【Text/Dao Ge said that the car listens to the wind and groans】

Since the beginning of this year, the performance of the automobile sector in the capital market is generally average, and in this context, finally some vehicle companies can't sit still and start the action of protecting the disk. On the evening of May 4, SAIC Motor announced that its controlling shareholder, Shanghai Automotive Industry (Group) Co., Ltd., intends to spend 1.6 billion to 3.2 billion yuan to increase its stake in listed companies in the next six months, without setting a price range.

Subsequently, on the evening of May 6, GAC Group also announced that GAC Industry Group, the controlling shareholder of GAC Group, has continued to increase its holding of 2,420,000 shares of H shares of the company through the stock exchange trading system in a centralized auction transaction, accounting for 0.02% of the company's total share capital, with an average increase of 6.53 Hong Kong dollars per share, and after the increase, GAC Industry Group holds 5,502,360,069 shares of GAC Group, accounting for 52.58% of the company's total share capital.

So why did the two major auto groups make such a move? It is understood that the increase of controlling shareholders is a common move of listed companies to protect the market. Unnamed securities analysts said that such moves are to highlight the company's confidence in future development, and pass this confidence to investors, to a certain extent, there is a sense of stabilizing stock prices.

Stock prices fell into a trough SAIC and GAC both launched a protective action

ITC And GAC Group have launched a protective action in the form of controlling shareholders to increase their holdings, not without reason, but the stock prices of the two companies are somewhat sluggish. At the close of trading on May 6, SAIC's stock price closed at 16.34 yuan, with a market value of only 190.9 billion yuan, and it is worth mentioning that SAIC's stock price has fallen by about 20% this year. Gac Group's situation is not much better, at the close of the market on May 6, the Hong Kong stock price of GAC Group fell 2.88% to close at HK$6.140, with a total market value of about 67.074 billion, although the A-share stock price rose slightly on the day, it only closed at 12.29 yuan / share, with a market value of 128.6 billion.

The so-called no comparison is no harm, at the closing price on May 6, the stock price of SAIC In the A-share market is far lower than that of its well-off shares in sales and profits, and the GAC Group in the Hong Kong stock market is rubbed by Xiaopeng Automobile and Ideal Automobile. Private enterprises with similar status, such as Great Wall Motor and Geely Automobile, are also higher than the stock prices of SAIC Motor and GAC Group. The two automobiles have been in the air for decades, one has made the Sino-German joint venture fly, and the other has made the Sino-Japanese joint venture fly the Meritorious Automobile Group, which really lacks a little face.

Judging from the "controlling shareholder increase plan" of the two major automobile groups, they have obviously opened a protective disk defense war. As for the fate, you can probably refer to a "official statement": based on the confidence in the company's future development prospects and the recognition of the company's long-term investment value, in order to effectively safeguard the interests of investors, enhance investor confidence, and promote the company's sustained, stable and healthy development, the company's controlling shareholder XXXX implements an increase in holdings.

It is worth mentioning that to some extent, the two major companies have also responded to the policy, before April 11, the Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission, the All-China Federation of Industry and Commerce also issued the "Notice on Further Supporting the Healthy Development of Listed Companies", encouraging listed companies to repurchase shares for equity incentives and employee stock ownership plans, supporting eligible listed companies to repurchase for stable stock prices, while encouraging major shareholders, directors and supervisors to hold shares of listed companies for a long time, and actively stabilize stock prices by increasing their holdings when the company's stocks have fallen sharply. Recently, listed companies such as Rongsheng Environmental Protection, Huayuan Holdings, Pan micro network, Xinzhi Cognition, and Guoyuan Securities have also issued announcements related to repurchases or shareholders.

Performance does not show weakness Putting aside the stock price is actually a good mix

In stark contrast to the performance in the capital market, both SAIC and GAC are remarkable in terms of performance. In 2021, SAIC Motor achieved a double increase in revenue and net profit, achieving revenue of 779.85 billion yuan, an increase of 5.1% year-on-year; net profit of 24.53 billion yuan, an increase of 20.1%; and the annual retail sales of vehicle terminals reached 5.811 million units, an increase of 5.5% year-on-year, ranking first in the country in vehicle sales for 16 consecutive years. However, due to the impact of the epidemic, SAIC Motor's performance in the first quarter of this year declined, of which revenue was 182.471 billion yuan, down 3.5% year-on-year, and net profit was 5.516 billion yuan, a year-on-year decline of 19.44%.

Gac Motor Group's performance is also eye-catching, with revenue and profit reaching a record high in 2021, with operating income of about RMB75.11 billion, an increase of 19.76% year-on-year; Net profit attributable to shareholders of listed companies was 7.335 billion yuan, an increase of 22.95% year-on-year; Full-year vehicle production and sales were 2.14 million units, up 5% year-on-year. Even its first quarter still performed strongly, with operating income of 23.145 billion yuan in the first quarter of this year, an increase of 45.67% year-on-year; net profit attributable to the parent company of 3.009 billion yuan, an increase of 27.17% year-on-year.

However, the two car companies, which are very profitable or sales, are not very popular in the capital market, but if it is only because the label of new energy is not obvious? This logic seems to be not easy to establish, after all, the layout of the two companies in new energy is not necessarily how bad.

In the product map of SAIC Motor, the growth of new energy vehicles is remarkable, in 2021, the company's new energy vehicle sales reached 732,600 units, an increase of 129% year-on-year, and the proportion of sales increased from 5.7% in the previous year to 13.4%. At the same time, the high-end electric brand Zhiji Automobile launched by SAIC Motor has ushered in the first product landing, and the independent Feifan Automobile is also accelerating the introduction of new products. In terms of GAC Group, GAC Trumpchi is engaged in mixing, while GAC E-An has become a new upstart in the electric vehicle market, with sales reaching 123,000 units in the past year, an increase of more than 110% year-on-year. Is such data really worse than some new car-making forces?

Of course, the current downturn in the entire capital market, especially vehicle stocks, may not be without reasons, since the beginning of March this year, the northeast region, the Yangtze River Delta region, especially the Shanghai region has been significantly affected by the epidemic, and related enterprises in the automobile industry have been affected by the epidemic and have borne greater pressure in production, logistics and other aspects. As a result, in April this year, few car companies increased their sales year-on-year and month-on-month. GAC Group's April sales fell by more than 30% year-on-year, and SAIC's April sales fell by more than 60% year-on-year. But in April, when production was stopped and delivered was delayed, car companies did not need to laugh at others.

Looking at the listed vehicle companies, the performance of the two giants of SAIC Group and GAC Group in the capital market is not satisfactory, and there is really nothing wrong with its own development, under this round of shareholder increase plans, can the two car companies have a wave of correction in the capital market? We waited.