Profits have skyrocketed, and the price limit is rare! Great Wall Motors is doing it again?

Girlfriend Finance

2024-04-25 23:24Posted in Chongqing Finance and Economics Creator

Summary: Sales differentiation of various brands (welcome to pay attention to girlfriend finance)

Written by Honey Sister

 This is the 1499th original article of @girlfriend finance

An explosive quarterly report has made Great Wall Motors, a long-dormant automobile boss, once again attract attention.

On the evening of April 24, Great Wall Motor (601633) disclosed its first quarterly report, achieving operating income of 42.86 billion yuan in the first quarter of 2024, a year-on-year increase of 47.6%, and a net profit of 3.228 billion yuan, a year-on-year increase of 1752.55%.

On April 25, Great Wall Motor's A-share pre-market limit, and Hong Kong stocks also opened sharply higher.

From the former leader of new energy vehicles to the current halo fading, Great Wall Motor's stock price has also experienced a process from the bottom to the peak and then falling back in recent years. What does this explosive quarterly report really mean?

01

In the latest quarterly report, Great Wall Motor mentioned that the increase in total operating income was mainly due to the increase in vehicle sales and the increase in single vehicle revenue in the reporting period.

In the previous production and sales report, Great Wall Motor disclosed that the cumulative sales of Great Wall Motor's models in the first quarter were 275,333 units, a year-on-year increase of 25.11%, of which the monthly sales in March were 100,276, a year-on-year increase of 11.02%, and these data have indeed rebounded a lot compared with 2023.

In the first quarter of 2023, Great Wall Motor's cumulative sales of its models decreased by 22.41% year-on-year to 219,968 units, and 90,240 units in March, down 10.59% year-on-year.

In the first quarter of 2024, Great Wall Motor's production and sales have rebounded, which is good news. However, it is worth noting that most of its production and sales data in the first quarter of 2024 have not yet recovered to the same period in 2022.

Compared with revenue, Great Wall Motor's growth is actually more eye-catching profit. In the first quarter of 2024, the company's attributable net profit increased by 1,752.55%. According to the financial report, the main reason is that the company's sales scale has increased, the sales structure has been optimized, and the performance indicators such as operating income and net profit attributable to shareholders of listed companies have increased significantly compared with the same period last year.

Mi Mei took a look at the revenue of Great Wall Motors in the first quarter increased by about 47.6% year-on-year, but the growth rate of total operating costs was not so high, at 37.8%, and the management expenses even decreased: a year-on-year decrease of about 5.6% to about 1 billion yuan.

In the other quarter, Great Wall Motor's impairment losses narrowed significantly. For example, the credit impairment loss narrowed from 12.543 million yuan in the first quarter of 2023 to 37.17 billion yuan in the first quarter of 2024, and the asset impairment loss narrowed from 166 million yuan to 53.22 million yuan. The loss on asset disposal increased somewhat, from 8.137 million yuan in the first quarter of 2023 to 18.03 million yuan.

In the first quarter of 2023, due to the low revenue base (29.039 billion yuan), Great Wall Motor's total operating cost (29.38 billion yuan) was higher than the total revenue, plus impairment losses, etc., resulting in a negative total profit (-70.656 million yuan). In the first quarter of 2024, Great Wall Motor's total profit turned from negative to positive, to 3.758 billion yuan.

02

Great Wall Motors is going to work again? It doesn't seem to be easy to say.

Judging from the production and sales performance of the latest first quarter, Mimei found that the growth of Great Wall Motor's brands was quite differentiated. WEY and tank brands grew rapidly, with a cumulative growth rate of 182.34% and 103.16% in the first quarter, respectively, and sales reached 9,608 and 49,184 respectively, but on the other hand, the sales of Great Wall pickup trucks and Ora brands grew negatively, falling by 10.9% and 15.41% respectively in the first quarter.

In the first quarter of 2023, the situation is a little different. At that time, the WEY brand fell sharply by 76.18% year-on-year, the tank brand also fell by 6%, the ORA brand also fell by 47.37%, and the Great Wall pickup truck increased by 13.65% year-on-year.

The sales volume of the Haval brand in the first quarter of 2023 fell by 24.58% year-on-year, and increased by 25.53% in the same period of 2024.

It can be seen that except for Ora, which has been declining steadily in the past two years, other brands of Great Wall Motors are basically ups and downs, and the growth trend has not been determined. Especially the main brand Haval, it is difficult to say what the future will be.

In addition, Great Wall Motors also has a bright spot in overseas sales, with sales of 92,778 units in the first quarter and 35,815 units in March, compared with 51,975 units and 22,293 units in the same period in 2023.

In terms of NEV sales, Great Wall Motor sold 59,182 units in the first quarter of 2024 and 21,882 units in March, compared to 27,808 units and 13,155 units in the same period in 2023.

For Great Wall Motors itself, the start of this year is not bad in terms of new energy vehicles, with a year-on-year growth rate doubling. However, as a traditional car company that began to lay out the new energy vehicle track earlier, Great Wall Motor's card position in this track is not eye-catching.

Image source: Passenger Association (Thank you!)

According to the latest data from the Passenger Association, Great Wall Motors ranked ninth in terms of the cumulative retail sales of new energy vehicles in the first three months of this year, lagging behind other traditional car companies such as BYD, Geely, Changan, SAIC-GM-Wuling, Sailis, and GAC Aion. You must know that in 2021, Great Wall Motors will still rank fourth. At that time, only BYD Automobile, SAIC-GM-Wuling, and Tesla China were in front of it.

03

The last thing that needs to be paid attention to is the personnel shock of Great Wall Motors, which is also related to whether a company can develop stably. In Mi Mei's impression, since July 2022, Wang Fengying officially stepped down as the general manager of Great Wall Motors, and then joined Xiaopeng Motors, Great Wall Motors has been a little "unstable".

In 2023, Guo Tiefu, the general manager of public relations of Great Wall Motors, who has only been in the company for three months, will also resign, Wen Fei, the general manager of the Ora Salon brand, will be revealed to have resigned due to "physical reasons", Chen Siying, the former CEO of Wei brand new energy and general manager of tank brand marketing, will resign, and Li Xiaorui, the former general manager of the Haval brand, will resign and jump to Xiaomi.

By 2024, public reports show that Qiao Xinyu, executive vice president of Haval marketing of Great Wall Motors, has also left......

Recently, according to "Everybody Auto", citing a number of independent sources, Great Wall Motors is undergoing a new round of organizational adjustments, expanding the number of middle platforms to eight, adding new media live broadcast operations at the beginning of this year, and recently adding a new commodity management middle platform.

Wei Jianjun's Great Wall Motors once hired so many external elites, and the goal was to build a global Great Wall Motors. However, the ideal is very plump, and the reality is very skinny.

However, although Great Wall Motors has had many twists and turns in the past two years, this year, it seems that there is a momentum to do a lot of work, especially the boss Wei Jianjun, who frequently walks to the front desk, which to some extent illustrates the change in the direction of Great Wall Motors.

Long slope and thick snow, look forward to more surprises from Great Wall Motors!

The charts not indicated in this article are from the public disclosure of listed companies, and the article is only for discussion and analysis, and does not constitute investment advice.

Copyright Notice:This article is created by girlfriend finance, unauthorized reprinting is prohibited! In addition, please indicate the source and author at the beginning of the article when authorizing reprinting, thank you!

View original image 73K

• 

• 

• 

• 

• 

•