GWM (2333.HK) Sales Volume Bucks the Trend May 21, 2019 227

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD5.96

Investment Summary
Sales Volume Bucks the Trend, and Rises 6.5% yoy in the First Four Months
Great Wall Motor (GWM)`s sales figures for April showed a 2.5% yoy increase to 83,800
units, continuing to buck the trend (-16% for the industry). The sales volume of SUV series
decreased 3.6% yoy to 65,700 units, dropping from a proportion of nearly 90% to 78.4%; the
sales volume of Pickup Wingle is 13,099 units, increasing by 1.1% yoy and staying stable; the
sales volume of sedans is 5,002 units, increasing by 680% yoy, mainly owing to the sales
volume of new energy vehicle sub-brand ORA of 4,614 units.
In terms of SUV, Haval series sold 58,444 units in total, increasing by 6.2% yoy, with 3,295,
2,294, 28,045 and 1,084 units for H2, H4, H6 and H9, respectively, dropping by 56%, 55%,
18% and 17% yoy, and 10,004, 10,140 and 2,034 units for M6, F7 and F5, respectively, which
attributed most to the increase. The price drop of M6 has stimulated the demand, and the
launch of F7 has received a sound market response, with a stable monthly sales volume of
above 10,000 units. High-end brand WEY was still in the running-in stage, and its total sales
volume dropped by 44.5% yoy to 7,293 units.
In the first four months, the accumulated sales volume of GWM recorded 368,000 units,
increasing by 8.65% yoy, with SUVs accounting for 81%, with 298394/49595/19671 units for
SUV/Pickup/Sedan, respectively, up by 2.3%/11%/858% yoy,.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

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.

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