Investment Thesis
Result of Q1 in 2018 Rebounded Slightly
In 2017, Great Wall Motor recorded RMB101.17 billion in revenue, up 2.6% yoy, and a slash of 52.35% in net profit attributable to parent company, at RMB5.03 billion, as well as RMB0.55 of EPS. This slump of the result is mainly caused by heavy promotion of the old products in the first half year, below-scaled sales of new products (which led to the reduced gross profit, down 6 ppts), and the above-expectation advertising effect of new arrivals.
According to the result report of Great Wall Motor in Q1 2018 (China Accounting Standards), the revenue grew by 14.0% yoy to RMB26.57 billion; the net profit attributable to parent company increased by 6.5% yoy to RMB2.08 billion; and the EPS stood at RMB0.23. Compared with EPS of the last year, which stood at RMB0.21, the result exceeded market expectancy slightly.
Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.
