"Cialis will become one of the top ten global luxury brands in the future", when the high-priced M9 continues to stand in the high-end market, the stock price and sales of Cialis have risen together, and Zhang Xinghai, chairman of the group, can no longer hide his excitement.
A few days ago, the latest Dading data of the M9 exceeded 80,000 units in 136 days on the market. In April this year, 29,600 new cars were delivered. Among them, the delivery volume of the M9 reached 13,400 units.
After 4 years of losses, Cialis (SH601127) ushered in its first quarterly profit. In the first quarter of 2024, the operating income of Cialis was 26.561 billion yuan, a year-on-year increase of 421.76%, and the net profit was 220 million yuan, an increase of 845 million yuan over the same period last year. The growth of sales volume accelerated, and the scale effect appeared, and the gross profit margin of products increased to 21.5%.
The price is high, but the sales are good
A few days ago, the retail sales list of new energy manufacturers in April announced by the Passenger Association, Sailis Automobile increased by 725.7% year-on-year, ranking eighth on the list. The growth of sales of Cialis automobiles is inseparable from the core brand - AITO.
In 2021, Sailis Automobile and Huawei went both ways, fully cooperated in the cross-border automotive business, and jointly designed and brought users AITO M5, M7, and M9 intelligent electric vehicle products. Among them, the high-priced Wenjie M9 took the lead in sales.
In fact, for a long time in the past, the low-end market of MPVs was dominated by SAIC-GM-Wuling, the mid-range market was firmly occupied by SAIC-GM Buick GL8, and the high-end market was occupied by Toyota Alpha and Lexus LM. The market share of self-owned brand high-end MPVs is extremely small.
Looking back at the development of the domestic MPV market in recent years, in 2016, under the dual influence of the large increase in the supply of low-end products and the policy of sending cars to the countryside, China's MPV sales reached 2.55 million units, with a market share of 10.5%. The best-selling models are mainly low-end models, including Wuling Hongguang S, Baojun 730 and so on.
Subsequently, the mid-to-low-end MPV gradually switched to the mass SUV, and the MPV market gradually cooled down, and sales declined for four consecutive years. In 2022, domestic MPV sales hit a record low, and the market share fell to 4.1%.
In 2023, due to the impact of policies and market environment, domestic MPV sales will rise against the trend, with annual sales reaching 1.093 million units, a year-on-year increase of 15.9%. Especially in the second half of 2023, many car companies have set their sights on the rather niche MPV market segment and launched a large number of products. Among them, the performance of domestic brands has been particularly positive, with electrification and premiumization as the core strategy for the development of MPVs.
While the market is expanding, the competitive landscape is also changing. Looking at the pricing of products entering the market after 2023, the price of self-owned brand MPV models is generally higher than 300,000 yuan. As a result, the M9 will be officially launched on December 26, 2023, positioning itself as a luxury large SUV, with two power forms: extended range and pure electric, of which the extended range version is more favored by consumers. Among them, the M9 extended range Max version is 469,800 yuan, the M9 extended range Ultra version is 529,800 yuan, the M9 pure electric Max version is 509,800 yuan and the M9 pure electric Ultra version is 569,800 yuan.
According to the data, in 2022, the total sales of MPV models priced below 300,000 yuan fell by 22.2%. In stark contrast, sales of MPVs priced at more than CNY 300,000 have more than tripled.
In this regard, Cui Dongshu, secretary general of the passenger association, believes that after the huge impact of Internet e-commerce on the traditional wholesale and retail circulation model and the specialized mode of logistics and distribution, the MPV market below A-class has shrunk rapidly, and the high-end trend of the MPV market is obvious.
Earnings capital was bullish in the first quarter
"The profit margin of high-end MPVs will be more considerable, which can help improve the profitability of new energy vehicles." Industry insiders said. Facts have proved that the high-priced M9 continues to stabilize the high-end market, promoting the further improvement of the gross profit margin of Cialis.
According to the financial report data, in the first quarter of 2024, Sailis achieved an operating income of about 26.561 billion yuan, an increase of 38.61% month-on-month and a year-on-year increase of 421.76%; The net profit attributable to shareholders of the listed company was about 220 million yuan, an increase of 845 million yuan over the same period of last year (-625.1 million yuan), and the loss was turned into profit. As a comparison, for the whole year of 2023, the net loss of Cialis will reach nearly 2.45 billion yuan.
It is worth mentioning that the operating cost ratio of Cialis in the first quarter of 2024 is 8 percentage points lower than that in the fourth quarter of 2023; The sales growth accelerated, and the scale effect appeared, and the efficient internal management increased the gross profit margin of the product to 21.5%.
Driven by this, the share price of Cialis continued to rise to a record high of 106.66 yuan, and the total market value was once close to 160 billion. As of today's press release, Cialis reported 85.02 per share, with a total market value of 128.3 billion.
For the rise in performance, Cialis said that the sales of new energy vehicles in the first quarter were 94,800, a year-on-year increase of 374.77% and a month-on-month increase of 14.66%, and the sales of new energy vehicles in a single quarter hit a record high.
The rise in sales and performance not only made Zhang Xinghai excited, but also showed great favor from the capital market, and a number of securities companies issued research reports to give good predictions.
Guosen Securities raised its profit forecast for Cialis, and it is expected that its net profit attributable to the parent in 2024~2026 will be 3.24 billion yuan, 6.04 billion yuan and 8.3 billion yuan respectively (the original forecast of net profit attributable to the parent in 2024~2025 will be 280 million yuan and 3.06 billion yuan).
According to the analysis of Founder Securities, the opening of large-scale delivery of M9 has driven the price and volume of Cialis to rise, and the brand sales are expected to continue to climb from March to June, and the proportion of sales will continue to increase. CICC's research report believes that the inflection point of Celis' profitability has appeared, and it is expected to enter a steady state stage in 2025.
But under the appearance of all prosperity, Cialis can't do "sit back and relax".
Huapeng circle expands the hidden crisis
On May 10, Huawei's official website updated its management information. To date, Yu Chengdong is the Executive Director of Huawei, Chairman of the Board of Directors of the Device BG, Chairman of the Board of Directors of the Intelligent Vehicle Solution BU, and Director of the Intelligent Device and Intelligent Vehicle Components IRB.
In addition, on May 8, Yu Chengdong's Weibo profile was also updated, and he was changed from CEO of Device BG to Chairman of Device BG from CEO of Huawei to Chairman of Device BG.
Compared with before, Yu Chengdong is missing the position of "CEO of Huawei Device BG". At the same time, another Huawei executive, He Gang, updated his Weibo certification to "CEO of Huawei Device BG".
Huawei's series of personnel adjustments have been interpreted by many industry insiders as Huawei's aim to make key figures like Yu Chengdong more focused on strategic planning and guidance through the rational allocation of senior positions, especially product innovation for the consumer market and in-depth integration of intelligent vehicle solutions.
At the same time, with the popularity of sales, Huawei's circle of car friends has begun to become bigger and bigger, and the "Chinese content" of the entire automobile circle is getting higher and higher, and the "Huawei" halo of Cialis may be diluted.
It is reported that in addition to Cialis, Huawei also launched the Zhijie brand with Chery Automobile and the Xiangjie brand with BAIC. At the same time, Huawei is also working with JAC Motors to build the fourth Huawei Smart Choice brand. Although in Huawei's planning, the products of each car company do not overlap - some make sedans, some make MPVs, and some make B-class cars, Huawei's formula is no longer the unique language of Cialis, and it also divides a certain amount of traffic and market.
Regarding this, Cialis may have expected it a long time ago. In March 2023, a new new energy brand "Blue Electric" was released, and the price range of the first model, the Blue Electric E5, was 139,900 yuan to 151,900 yuan, which was summarized by netizens as "half price questioning". At the end of November of the same year, the Blue Electric E3 electric compact SUV was launched.
However, after breaking away from Huawei's technology and brand halo, the sales of these two Cialis independent products were dismal. According to public data, the cumulative sales of Landian E5 in 2023 will only be 8,506 units. In the end, it failed to support the ambition of Cialis to "walk independently".
In the view of industry analyst Zhang Xiang, Huawei occupies the initiative in the cooperation with Cialis, which previously only had Cialis, but with the addition of partners such as Chery, Huawei's resources are bound to be dispersed; At the same time, Cialis lacks core technology and weak brand power, and its development is completely pinned on Huawei, and Cialis that is overly dependent on Huawei may also put itself in a disadvantageous situation.
In this regard, Zhang Xinghai, chairman of Sailis Group, has publicly stated: "In the future, Sailis will continue to deepen and further explore comprehensive cooperation with Huawei in the cross-border automotive business, and strengthen cooperation with ecological partners such as user centers and supply chains." ”
In the eyes of many people in the industry, at this time, the infinite scenery of Cialis may need the blessing of Huawei's halo. As netizens ridiculed, if you buy Mate60 and send it to the world, the sales price of Cialis will be "far ahead".