Company Report: Great Wall Motor (02333 HK) Toliver Ma 马守彰 公司报告:长城汽车 (02333 HK) +852 2509 5317
[email protected] 国泰君安研究 19 September 2016 Gross Margin Surprises, Upgrade to ‘Buy’ 好于预期的毛利率,上调至“买入” GTJA Research GTJA Rating: Buy 1H16 net profit up 4.4% yoy to RMB 4,926 mn, in line with market Upgraded consensus, but better than our expectations. Overall vehicle sales grew 评级: 买入 (上调) 8.8% yoy, driven by strong SUV growth. Gross margin decreased 1.1ppts to 23.9% compared to 1H15; however, the decrease is less than our expectation as the Company sold more Haval H6 vehicles which have a higher margin 6-18m TP 目标价: HK$9.29 and benefit from better plant utilization. Revised from 原目标价: HK$7.14 We revise up EPS (basic) by 15.7% to 17.0% during 2016-2018 due to Share price 股价: HK$7.960 expected better gross margin percentage. Growth momentum intact as Aug. 2016 sales up 25.4% yoy. We believe that the Haval Series, especially Stock performance the Haval H6, is highly regarded by the market and the Haval H7 is quite 股价表现 welcoming in its segment. The solid sales figures should allow GWM to 50.0 % of return maintain its market share and slow down the decrease in gross profit margin. 40.0 We upgrade our investment rating to “Buy”. We expect that GWM will be 30.0 able to defend its market share through 1) limiting growth of its selling price 20.0 and offering more sales discounts or other forms of promotion, and 2) 10.0 improving product mix and specifications, such that we would see more 0.0 launches of Haval SUVs.