Investment Rating - The report maintains a "Buy-A" rating for the company [6] Core Views - The company experienced a temporary performance pressure in Q1 2025, with revenue of 40 billion yuan, down 7% year-on-year and 33% quarter-on-quarter, and a net profit of 1.75 billion yuan, down 46% year-on-year and 23% quarter-on-quarter [1] - The company is expected to enter a growth phase as new product cycles begin, with potential for a sales upturn driven by refined product offerings and direct sales channel expansion [4] - The company has significant export potential and a diverse product lineup, which is anticipated to enhance profitability as new models are introduced [4] Revenue Summary - In Q1 2025, total sales were 275,000 units, a decrease of 7% year-on-year, with export sales at 91,000 units, down 2% year-on-year [2] - The average selling price (ASP) per vehicle was 156,000 yuan, remaining stable year-on-year but down 3,000 yuan quarter-on-quarter [2] Profit Summary - The comprehensive gross margin for Q1 2025 was 17.8%, a decrease of 1.5 percentage points year-on-year, attributed to reduced scale effects and increased terminal discounts [3] - Sales expenses increased to 2.3 billion yuan, up approximately 900 million yuan year-on-year, primarily due to investments in direct sales and marketing for new vehicle launches [3] - Non-recurring gains and losses were 280 million yuan, down 900 million yuan year-on-year, mainly due to delayed confirmation of scrap tax refunds [3] Outlook Summary - The mainstream market for new vehicles is expected to see a sales upturn, with successful initial results from new models like the Menglong and New Blue Mountain [4] - The Hi4Z technology is anticipated to significantly enhance the Tank brand's market penetration and profitability [4] - The company is well-positioned for growth with a comprehensive product range and strong technical reserves, particularly in the export market [4] Investment Recommendations - The report forecasts net profits of 14.03 billion yuan, 17.40 billion yuan, and 20.96 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 14.1, 11.4, and 9.5 times [5] - A target price of 32.79 yuan per share is set for the next six months based on a 20 times PE for 2025 [5]

Core Insights - The company reported a total revenue of 40.019 billion yuan for Q1 2025, a decrease of 2.840 billion yuan compared to the same period last year, representing a year-on-year decline of 6.63% [1] - The net profit attributable to shareholders was 1.751 billion yuan, down 1.468 billion yuan from the same period last year, reflecting a year-on-year decrease of 45.60% [1] - The net cash flow from operating activities was -8.980 billion yuan, ranking third among disclosed peers, and decreased by 6.346 billion yuan compared to the same period last year [1] Financial Ratios - The latest debt-to-asset ratio stands at 61.11%, ranking third among disclosed peers [3] - The gross profit margin is 17.84%, down 1.67 percentage points from the previous quarter and down 2.20 percentage points year-on-year [3] - The return on equity (ROE) is 2.12%, a decrease of 2.38 percentage points compared to the same period last year [3] Earnings Per Share and Turnover Ratios - The diluted earnings per share (EPS) is 0.21 yuan, a decrease of 0.17 yuan compared to the same period last year, reflecting a year-on-year decline of 44.74% [3] - The total asset turnover ratio is 0.19 times, down 0.03 times year-on-year, representing a decline of 13.85% [3] - The inventory turnover ratio is 1.13 times, ranking third among disclosed peers, and decreased by 0.17 times compared to the same period last year, reflecting a year-on-year decline of 12.90% [3] Shareholder Information - The number of shareholders is 150,300, with the top ten shareholders holding a total of 7.875 billion shares, accounting for 91.97% of the total share capital [3] - The largest shareholder is Baoding Innovation Great Wall Asset Management Co., Ltd., holding 5.970 billion shares [3]

Investment Rating - The investment rating for Great Wall Motors is "Buy" (maintained) [1] Core Views - The report highlights that Great Wall Motors is facing short-term pressure on performance due to product cycle fluctuations, despite ongoing globalization efforts [1] - The company reported a Q1 2025 revenue of 40.019 billion yuan, a decrease of 6.6% quarter-on-quarter and 33.2% year-on-year, with a net profit attributable to shareholders of 1.751 billion yuan, down 45.7% quarter-on-quarter and 22.7% year-on-year [1] - The report notes that the decline in net profit is primarily due to product cycle fluctuations leading to decreased quarterly sales, increased sales expenses, and delays in new car certifications affecting tax refunds in Russia [1] - Great Wall Motors' Q1 gross margin was 17.84%, with sales expenses rising to 2.296 billion yuan, reflecting a significant increase due to accelerated investments in direct sales and new model launches [1] - The report emphasizes the growth of the Wey brand and ongoing international expansion, with total wholesale sales of 256,800 units in Q1, a year-on-year decrease of 6.7% [1] - The company plans to launch multiple new models in 2025, enhancing its product matrix across various brands [1] - Revenue forecasts for 2025, 2026, and 2027 have been adjusted to 219.515 billion yuan, 237.623 billion yuan, and 253.828 billion yuan respectively, reflecting a year-on-year growth of 8.57%, 8.25%, and 6.82% [1] - Net profit forecasts for the same years have been revised to 12.270 billion yuan, 13.854 billion yuan, and 14.366 billion yuan, indicating a year-on-year decrease of 3.33% in 2025, followed by increases in subsequent years [1] Financial Summary - The total revenue for 2023 is projected at 173.212 billion yuan, with a year-on-year growth of 26.12% [1] - The diluted EPS for 2025 is estimated at 1.43 yuan, with a P/E ratio of 18.44 [1] - The report indicates that the company’s sales and R&D investments are increasing, which has led to a downward adjustment in profit expectations [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing short-term pressure on performance due to product cycle fluctuations, despite ongoing globalization efforts [1] - The company reported a Q1 2025 revenue of 40.02 billion yuan, a decrease of 6.6% quarter-on-quarter and 33.2% year-on-year, with a net profit attributable to shareholders of 1.751 billion yuan, down 45.7% quarter-on-quarter and 22.7% year-on-year [1] - The company plans to launch multiple new models in 2025, enhancing its product matrix [1] - The forecast for 2025-2027 has been adjusted downwards for both revenue and net profit due to increased competition in the industry [1] Financial Summary - Total revenue forecast for 2025 is 219.515 billion yuan, with a year-on-year growth of 8.57% [1] - Net profit attributable to shareholders for 2025 is projected at 12.270 billion yuan, reflecting a decrease of 3.33% year-on-year [1] - The earnings per share (EPS) for 2025 is estimated at 1.43 yuan, with a price-to-earnings (P/E) ratio of 18.44 [1]

Core Viewpoint - The company reported a decline in both revenue and net profit for Q1 2025, attributed to internal and external factors impacting performance [1][2] Financial Performance - Q1 2025 revenue reached 40.019 billion yuan, a year-on-year decrease of 6.63% - Net profit attributable to shareholders was 1.751 billion yuan, down 45.60% year-on-year - Non-recurring net profit was 1.469 billion yuan, a decline of 27.43% year-on-year [1] - The company sold 256,800 vehicles in Q1 2025, a decrease of 6.7% year-on-year, leading to a revenue drop of 6.6% [1] Cost and Expenses - Sales expenses for Q1 2025 were 2.296 billion yuan, an increase of 34.6% year-on-year and 44.6% quarter-on-quarter - The sales expense ratio was 5.7%, up 1.8 percentage points year-on-year [2] - The company experienced a significant increase in sales expenses due to accelerated construction of the direct sales system [2] Profitability Metrics - Gross margin for Q1 2025 was 17.8%, a decrease of 2.2 percentage points year-on-year - Net profit margin was 4.4%, down 3.2 percentage points year-on-year [2] - The company’s financial expense ratio improved to -2.6%, driven by increased foreign exchange gains [2] Product Development and Market Response - The company launched the second-generation Xiaolong MAX and the new Gaoshan, with pre-sale orders reaching 16,368 and 7,848 units respectively within 24 hours - The pricing for Xiaolong MAX ranged from 116,800 to 154,800 yuan, exceeding expectations [2] - The introduction of advanced driving technologies is expected to enhance product competitiveness and drive sales growth [2] Future Projections - Revenue forecasts for 2025-2027 are 251.052 billion, 294.832 billion, and 313.987 billion yuan respectively - Projected net profits for the same period are 14.957 billion, 17.184 billion, and 19.010 billion yuan respectively [3]

Core Viewpoint - The new MPV from Great Wall Motors aims to provide an all-scenario experience for families, emphasizing safety and comfort while rejecting range-extended technology [1][3]. Group 1: Product Features - The new high mountain series includes three body specifications: high mountain 7, high mountain 8, and high mountain 9, redefining "fully equipped space" for MPVs [3]. - The vehicles feature five color options and design elements inspired by traditional Chinese landscape painting, showcasing "Eastern aesthetics" [3]. - The high mountain series boasts a high-strength steel ratio of 81.96%, with A and B pillars made from 2000 MPa high-strength steel, enhancing body strength and resilience [3]. Group 2: Safety and Performance - The high mountain series is equipped with the Hi4 performance version power system, achieving a maximum power of 337 kW and a 0-100 km/h acceleration time of 5.7 seconds [5]. - The WLTC fuel consumption is as low as 7.15 liters per 100 km, with a reduction of approximately 0.9 to 1 liter compared to range-extended models [5]. - The vehicles incorporate a 6-second pressure-holding side air curtain, ensuring family safety during travel [3]. Group 3: Technology and Comfort - The L2+ driver assistance system emphasizes "human-machine co-driving," focusing on protecting and caring for the driver rather than replacing them [5]. - The high mountain series features the Coffee OS 3.2 smart operating system, supported by a "super three-piece set" that includes a super refrigerator, super cinema, and super sofa, enhancing the luxury and comfort of the cabin experience [5].

Core Viewpoint - Great Wall Motors reported a significant decline in net profit by 45.60% in Q1 2025, attributed to a product upgrade cycle, decreased sales, and increased investment in direct sales system development [1][2][3] Financial Performance - Total revenue for Q1 2025 reached 40.019 billion yuan, a decrease of 6.63% year-on-year [2][5] - Net profit attributable to shareholders was 1.751 billion yuan, down 45.60% compared to the previous year [1][2] - Earnings per share fell to 0.21 yuan, a decline of 44.74% from 0.38 yuan in the same period last year [2][5] - The net cash flow from operating activities was -8.980 billion yuan, worsening from -2.634 billion yuan in the previous year [1][2] Asset and Equity Position - As of the end of Q1 2025, total assets amounted to 2125.47 billion yuan, a decrease of 2.38% from the end of 2024 [2][5] - Shareholders' equity increased by 4.66% to 826.62 billion yuan compared to the beginning of the year, indicating an improvement in the company's equity structure [2][3] Debt Management - The total liabilities at the end of the reporting period were 1298.85 billion yuan, down from 1387.26 billion yuan at the beginning of the year, reflecting effective debt control measures [3]

Financial Performance - Total revenue for Q1 2025 was CNY 40.02 billion, a decrease of 6.63% compared to CNY 42.86 billion in the same period last year[5] - Net profit attributable to shareholders was CNY 1.75 billion, down 45.60% from CNY 3.23 billion year-on-year[5] - Basic earnings per share decreased by 44.74% to CNY 0.21 from CNY 0.38 in the previous year[6] - Operating profit for Q1 2025 was ¥1,723,592,831.81, a decline of 52.5% from ¥3,622,767,861.93 in Q1 2024[25] - Total profit for Q1 2025 was ¥1,851,376,023.21, compared to ¥3,748,200,858.65 in Q1 2024, indicating a decrease of 50.5%[25] - The net profit for the first quarter of 2025 was approximately ¥1.75 billion, a decrease of 45.5% compared to ¥3.22 billion in the same period of 2024[26] - The total comprehensive income for the first quarter of 2025 reached approximately ¥3.50 billion, an increase of 18.5% from ¥2.95 billion in the first quarter of 2024[26] Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -8.98 billion, compared to CNY -2.62 billion in the same period last year[5] - Cash flow from operating activities showed a net outflow of approximately ¥8.98 billion, compared to a net outflow of ¥2.63 billion in the first quarter of 2024, indicating a significant decline in operational cash flow[29] - Cash flow from investing activities generated a net inflow of approximately ¥10.05 billion, a recovery from a net outflow of ¥2.72 billion in the same quarter of the previous year[30] - Cash flow from financing activities resulted in a net inflow of approximately ¥302.95 million, down from ¥2.33 billion in the first quarter of 2024[30] - Cash and cash equivalents increased to ¥31,358,017,343.44 as of March 31, 2025, from ¥30,768,672,688.70 at the end of 2024[20] - Total assets at the end of the reporting period were CNY 212.55 billion, a decrease of 2.38% from CNY 217.27 billion at the end of the previous year[6] - Total assets decreased to ¥212,547,066,299.77 as of March 31, 2025, from ¥217,719,500,344.69 at the end of 2024[20] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 150,334[11] - The largest shareholder, Baoding Innovation Great Wall Asset Management Co., Ltd., holds 59.74% of the shares[12] - The largest shareholder, Baoding Innovation Great Wall Asset Management Co., holds 5,115,000,000 A shares, representing a significant portion of the company's equity[13] - HKSCC Nominees Limited holds 2,303,112,411 H shares, indicating strong foreign investment interest[13] - The top 10 shareholders do not have any related party relationships, ensuring independent governance[13] - The company has not engaged in any securities lending or borrowing activities related to the top shareholders[14] Future Plans and Investments - The company is focusing on product upgrades and direct sales system investments to enhance future performance[10] - Great Wall Motors plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[19] - The company is investing RMB 5 billion in new product development, focusing on electric and hybrid vehicles over the next three years[19] - Great Wall Motors aims to launch three new electric vehicle models in 2024, with a projected sales target of 300,000 units[19] - The company has initiated a strategic partnership with a technology firm to enhance its autonomous driving capabilities, with an investment of RMB 2 billion[19] - Great Wall Motors is exploring potential acquisitions to strengthen its supply chain, particularly in battery manufacturing[19] - The company has set a performance guidance for 2024, expecting revenue growth of 12% and a net profit margin of 8%[19] - Great Wall Motors is committed to sustainability, aiming for a 30% reduction in carbon emissions by 2025 through improved manufacturing processes[19] Stock and Bond Issuance - Great Wall Motors announced the issuance of convertible bonds, with details to be published on January 2, 2025, on the Shanghai Stock Exchange website[15] - The company will provide updates on the stock option incentive plan and the results of the stock conversion on February 5, 2025[15] - Great Wall Motors plans to announce the results of the 2023 restricted stock incentive plan on February 14, 2025[15] - The company will disclose the list of recipients for the 2023 restricted stock incentive plan on February 25, 2025[15] - An announcement regarding the repurchase and cancellation of restricted stocks is scheduled for February 14, 2025[15] - Great Wall Motors will provide information on the cancellation of the 2023 stock option incentive plan on March 31, 2025[15] - The company will publish the results of the stock option incentive plan on March 4, 2025[15] - Great Wall Motors will issue a notice to creditors regarding the cancellation of restricted stocks on March 31, 2025[15] - The company will provide updates on the stock option incentive plan results on March 31, 2025[15] - Great Wall Motors will publish details regarding the stock option incentive plan on March 31, 2025[15] Sales and Market Performance - The company experienced a decline in sales volume due to a product upgrade cycle, impacting revenue and cash flow[10] - Great Wall Motors reported a significant increase in revenue, reaching RMB 100 billion in 2023, representing a 15% year-over-year growth[19] - The company achieved a net profit of RMB 8 billion for the fiscal year, up 20% compared to the previous year[19] - User data indicates that the total number of vehicles sold in 2023 was 1.2 million units, marking a 10% increase from 2022[19]

Core Insights - Great Wall Motors is navigating a transformative wave in the automotive industry, focusing on global expansion and brand elevation for Chinese automotive brands [1] Group 1: Product Strategy and Market Focus - Great Wall Motors has launched the ONE GWM brand, emphasizing the creation of "global cars" tailored for international markets, responding to the evolving preferences of younger consumers [4][5] - The company is adapting its product offerings based on insights into consumer needs, with brands like Tank and Ora developed to meet specific market demands [4] Group 2: International Expansion - Since 1997, Great Wall Motors has exported products to over 170 countries, with more than 1,400 overseas sales channels and cumulative overseas sales exceeding 1.9 million vehicles [6] - The company is transitioning from product export to "ecological export," aiming for a comprehensive international presence across research, production, supply, sales, and service [6] Group 3: New Energy Vehicles (NEVs) - Great Wall Motors is committed to independent R&D in the NEV sector, with a comprehensive strategy across its five brands, including high-end smart vehicles and practical electric options [7] - The company acknowledges the competitive landscape post-subsidy phase in 2027 but is confident in its self-developed technology to meet market demands [7] Group 4: Marketing and Sales Strategy - The company is reforming its marketing channels by establishing a direct sales system to enhance customer engagement and streamline the manufacturing to service chain [8] - Great Wall Motors is focused on maintaining product quality and user experience over short-term gains, opting not to pursue certain technologies that do not align with its standards [8] Group 5: Commitment to Quality and User Trust - Great Wall Motors emphasizes a long-term approach to high-quality development, valuing the trust of its 15 million users as its most significant asset [8] - The company is committed to providing accurate information regarding advanced driver-assistance systems, ensuring responsible marketing practices [8]

Core Insights - Great Wall Motors (601633.SH) reported a total operating revenue of 40.019 billion yuan for Q1 2025, representing a year-on-year decline of 6.63% [1] - The net profit attributable to shareholders was 1.751 billion yuan, down 45.60% year-on-year [1] - The primary reasons for the decline include the company's product upgrade cycle, a decrease in sales, and increased investment in the direct sales system [1]