GWM (2333 HK) Sales Volume Increased with Stronger Profitability July 26, 2021 120

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD36.20

Investment Summary
H1 Results Were Outstanding, with Profit up by 205% Y-o-Y
According to the results report, in the first half of 2021, GWM reported operating revenue of
RMB62.16 billion, up by 73.0% Y-o-Y. The net profit attributable to the parent company was
RMB3,498 million, up by 205.2% Y-o-Y. The net profit attributable to the parent company
excluding non-recurring items was RMB2.83 billion, up by 252.8% Y-o-Y.
On a closer look at the quarters, in Q1 and Q2, the Company recorded operating revenue of
RMB31.12 billion and RMB31,042 million, up by 150.62% and 32.02% Y-o-Y, respectively.
The net profit attributable to the parent company was RMB1,639 million and RMB1,859
million, up by 352.2% and 3.51% Y-o-Y, respectively. The net profit attributable to the parent
company excluding non-recurring items was RMB1,335 million and RMB1,496 million, up by
278% and down by 3.6% Y-o-Y, respectively. The main reason for the results growth was the
increase in the overall model sales volume and the upgrade of product mix, which led to the
improvement in profitability.

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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