Great Wall Motor (601633) January 2020 Sales Data Review: Incentive Plan Increases Internal Strength, Expands Overseas, Expands Space

Great Wall Motor (601633) January 2020 Sales Data Review: Incentive Plan Increases Internal Strength, Expands Overseas, Expands Space
This report reads: The company sold 80,000 units in January 2020, each 28%, due to the decrease in working days due to the misalignment of the Spring Festival. It is expected that the incentive plan and overseas expansion will provide momentum for the company’s long-term performance growth. Investment Highlights: Maintain target price to 11.5 yuan to maintain the “overweight” level.Maintain the company’s EPS 佛山桑拿网 forecast for 2019/20/21 to 0.46/0.49/0.59 yuan, maintaining the target price of 11.5 yuan. The company’s sales in January 2020 were 80,000 units, and the average daily sales volume over the Spring Festival holiday was 3590 units, accounting for -3%. It is expected that the company will actively control terminal inventory.The monthly sales volume of pickup trucks of the Great Wall gun is 5,551 units, which has been maintained at a level of more than 5,000 monthly sales since listing. It is expected that under the background of restrictions on pickup trucks entering cities at the prefecture level and below, the company’s overall sales of pickup truck products will increase.Support strength. The incentive plan was submitted again, binding the interests of shareholders and employees, and improving the company’s long-term competitiveness.The incentive plan involved a total of 1966 people, accounting for 3% of the total number in 2018.According to company estimates, the total cost of the fair incentives.440,000 yuan, 0 lower than the 2019 version.200 million yuan.The assessment method still uses the method of increasing sales and profits. The reference base for sales in 2020 is 1.11 million units, which is 40,000 lower than the earlier 2019 version. The profit reference base is 47 trillion, which is 2 trillion higher than the 2019 version.Awareness of profitability. In January 2020, the company’s export sales increased by + 18%, and its international layout was gradually improved to expand its growth space.The company completed the construction of the Russian plant in June 2019, with a planned production capacity of 80,000 units. In January 2020, it integrated the agreement with General Motors. It plans to acquire the General Motors India’s Tarigan plant.Liang Automobile, a joint venture between the company and BMW, was approved by the Development and Reform Commission of Jiangsu 上海夜网论坛 Province in November 2019. The construction scale is to produce 160,000 fuel-powered passenger cars per year and to develop pure electric passenger cars. Risk reminder: the progress of production capacity construction is less than expected, and product profitability recovery is less than expected.