Changjiang Securities·2024-07-15 08:01Investment Rating - The report maintains a "Buy" rating for Great Wall Motors [8] Core Views - Great Wall Motors is expected to achieve a net profit attributable to shareholders of 6.5-7.3 billion yuan in the first half of 2024, representing a year-on-year growth of 377.5%-436.3% [5] - The company is committed to its transformation towards new energy vehicles, with significant adjustments in product, channel, and supply chain dimensions, which are expected to drive sales and performance improvements [2][6] - The company's four strategic expansion initiatives are anticipated to open up long-term growth opportunities for sales, while the shift towards smart technology is expected to enhance profitability across the entire industry chain [7] Summary by Sections Performance Forecast - For Q2 2024, Great Wall Motors is projected to achieve a net profit of 3.27-4.07 billion yuan, with a per vehicle profit of 12,000-14,000 yuan [2][6] - The company expects a significant increase in sales volume, with Q2 sales estimated at 284,000 vehicles, a year-on-year decrease of 5.0% but a quarter-on-quarter increase of 3.3% [6] Sales Breakdown - Overseas sales reached 109,000 vehicles in Q2 2024, marking a year-on-year increase of 51.1% and accounting for 38.2% of total sales [6] - The Tank brand saw a remarkable year-on-year sales increase of 95.9%, contributing to the overall profitability [6] Strategic Initiatives - Great Wall Motors is accelerating its global expansion, with its "ONE GWM" strategy covering over 170 countries and regions, and more than 1,000 overseas sales channels [6] - The company is focusing on the plug-in hybrid segment and plans to launch multiple new models across its various brands, including Haval, Tank, WEY, and Ora [6] Financial Projections - The report forecasts net profits for Great Wall Motors of 13.03 billion yuan in 2024, 16.16 billion yuan in 2025, and 17.86 billion yuan in 2026, with corresponding A-share PE ratios of 16.5X, 13.3X, and 12.1X [7]