Great Wall Motor (601633): In December, further control of inventories has been closed for a long period of time (Pacific Motor’s 2020 strategic recommendation)

Great Wall Motor (601633): In December, further control of inventories has been closed for a long period of time (Pacific Motor’s 2020 strategic recommendation)
Event: The company released a December sales report, and achieved a sales volume of 10.60,000 units, gradually achieving sales of 106.30,000 units, an annual increase of 0.69%, of which Haval brand sales 7.80,000 units, 9394 units sold under the WEY brand and 1 for pickups.50,000 units. Control the 杭州夜网 decompression of inventory channels before the holidays and integrate the retail industry.Taking into account the dealer’s capital cost and pressure before the Spring Festival, the company further opened up inventory control to reduce the pressure on the channel. The company’s wholesale sales in December were only 10.60,000 units, a certain length of a year.Essentially, the company’s passenger car insurance volume in December was 11.20,000 units, an increase of 7 in ten years.5%, an increase of 47 from the previous month.7%.In December, China’s passenger car insurance volume was 235.70,000 units, down 5 previously.4% in retail. The main models performed steadily, and the Great Wall Artillery hit a new high.Sales of the major models were solid, with H6 sales of 4.20,000 units, H9 sold 2,000 units, F7 sold 10,000 units, M6 sales reached 1.90,000 units, VV6 sold 4,900 units, Haval brand gradually achieved 76.90,000 units, leading the trend of Chinese SUV, WEY brand continues to maintain the scale of 100,000, the brand continues to store up.The sales of artillery shells exceeded 7,000 units and reached a new high. The Great Wall Artillery as a pickup and high-end attempt to achieve a successful breakthrough. Initially, it is growing and ending, and the strength will fight again in 2020.The data of the China Federation of Passenger Unions shows that the cumulative sales of narrow-sense passenger cars in 2019 is 2069.760,000 vehicles, a decrease of 7 per year.4%, the company’s headquarters closed with a small increase, the overall performance is better than the industry.In 2019, the company has almost no new models, and it is not easy to achieve growth against the trend. Starting from 2020, the company is expected to launch a new model platform and power system, which will gradually open a new product cycle. The company’s future performance is worth continuing to look forward to. Investment suggestion: The company ‘s sales volume in December will still increase to a certain extent, but it will still maintain a positive growth and close the retail end, and the retail end will perform well. Driven by the new product cycle, it is more worth looking forward to 2020. The current industry is inAt the bottom of certainty, the company still has some flexibility when the industry recovers. Pacific Motors will continue to strategically recommend Great Wall Motors in 2020. It is estimated that the company’s net profit attributable to its mothers in 19/20 will be 4.9 billion / 6 billion, respectively. Risk reminder: The sales volume of the automobile industry is lower than expected, and the price reduction promotion is larger than expected