My landlord
A few days ago, Great Wall Motors (601633) officially released its 2021 financial report, which is an excellent financial report, which is the top level in the automotive industry, and can even be included in the ranks of one percent of all more than 4,000 A-share companies.
We interpret them one by one.
Annual turnover of 136.4 billion yuan, dividend rate of more than 50%
According to the financial report, Great Wall Motor's financial indicators in 2021 continued to improve, of which the total operating income was 136.4 billion yuan, an increase of 32.04% year-on-year; overseas revenue was 16.16 billion yuan, accounting for 11.85%, an increase of 142.24% year-on-year. As of December 31, 2021, Great Wall Motor's total assets reached RMB175.41 billion.
In terms of profitability of the most important indicator, Great Wall Motor achieved a net profit of 6.73 billion yuan for the whole year, an increase of 25.41% year-on-year. The net profit after the restoration of equity incentive expenses was 7.63 billion, an increase of 39.75% year-on-year. In terms of dividends that investors pay the most attention to, Great Wall Motor Company intends to pay a dividend of about 650 million yuan at the end of the year, and has paid dividends of 2.77 billion yuan in the middle of 2021, and 3.42 billion yuan in dividends for the whole year, with a dividend ratio of more than 50.81%.
In terms of main business, Great Wall Motor achieved new car sales of more than 1.28 million units in 2021, an increase of 14.79% year-on-year, creating a record high. Among them, the core main Haval brand sold 770,008 vehicles in 2021, an increase of 2.6% year-on-year. Its new energy brand Euler will sell 135,000 new vehicles in 2021, an increase of 140% year-on-year. Hardcore off-road brand tanks, delivered 85,000 units throughout the year, accounting for more than 50% of the hardcore off-road vehicle market share. Great Wall pickup trucks will sell 233,000 units in 2021, and the cumulative global sales will exceed 2 million units, maintaining the first domestic and export sales for 24 consecutive years.
In particular, it is worth praising that in 2021, the premium ability of the Great Wall brand has increased significantly, and the average bicycle price has exceeded 106,000 yuan, an increase of 15.02% year-on-year. From January to February 2022, the proportion of Great Wall Motor's sales of models of more than 150,000 yuan increased to 15.5%, and the overall situation was booming.
Listed companies with performance of more than 99%.
According to the 2021 financial report, Great Wall Motors is red in all business indicators, and the major core indicators are enviable, and among the more than 4,000 A-share companies, it can reach the performance of Great Wall Motors. If measured by the three indicators of "annual turnover of more than 100 billion yuan; net profit of more than 5 billion yuan; dividend ratio of more than 50%", then Great Wall Motors can surpass the vast majority of A-share listed companies. If you add the two indicators of "operating income increased by 32.04% year-on-year and net profit increased by 25.41%" year-on-year, Great Wall can also eliminate most of the remaining companies. If you add another "dividend rate of more than 50%", then there are only a few who can achieve the performance of the Great Wall, less than one percent.
In the automotive industry, Great Wall Motors' excellent performance can be ranked at the forefront.
At present, there are about 56 A-share auto listed companies, most of which are second-tier companies like Dongfeng Motor, Zotye and Haima, which have a turnover of less than 20 billion yuan and a net profit of less than 1 billion yuan. In addition, companies like SAIC Motor Group, although the turnover and net profit are very outstanding, but the main business of the joint venture sector such as Saqi Volkswagen and SAIC-GM is mainly not in the scope of our analysis. After removing the two components, the only really good auto stocks in the Chinese stock market (including Hong Kong) are great wall, Changan, Geely and BYD. These four companies are also the best independent car companies in China at present, and we analyze and compare the four companies one by one according to the four core indicators of turnover, turnover growth, net profit and net profit growth.
In 2021, Great Wall Motor's turnover was 136.4 billion yuan, an increase of 32.04% year-on-year, and its net profit exceeded 6.7 billion yuan, an increase of 25.41% year-on-year.
Geely Automobile's turnover was 101.6 billion yuan, with a turnover growth rate of 10.31%, and a net profit of 4.847 billion yuan, a net profit growth rate of -12.4%.
Changan Automobile has not yet released its annual report, with a turnover of 79.2 billion yuan in the first three quarters (estimated to be 105.6 billion yuan for the whole year), an increase of 41.8% year-on-year; a net profit of 2.992 billion yuan (estimated to be 3.989 billion yuan for the whole year), and a net profit of -14.16% year-on-year.
BYD Automobile's total operating income in 2021 is 216.1 billion yuan, of which the automobile business accounts for about 52%, equivalent to 112.37 billion yuan, and the operating income increased by 38% year-on-year; the net profit is 3.045 billion yuan, and the automotive sector is roughly estimated to be 1.583 billion yuan in accordance with the proportion of 52%, an increase of -28% year-on-year.
According to the 2021 financial reports of the four independent car companies, Great Wall Motors has the best performance, ranking first in the three indicators of turnover, net profit and net profit growth, and the dividend ratio is also more than Geely and BYD, which have announced dividend plans, and the probability will also surpass Changan Automobile and become the most generous dividend automobile enterprise.
From the above perspective, among the four relatively excellent first-class automobile companies, Great Wall Motor Company has the best performance, the best profit growth, the most generous dividends, and the largest investment value.
Actively transform into a global intelligent technology company
It should be pointed out that even if the 2021 financial report is excellent, it only represents 2021, representing the past, not the future. Facing 2022 and facing the strategic goals of 2025, Great Wall Motors is undergoing a profound transformation. This transformation is steady and deep, subtle, but it determines the future of Great Wall Motors. The key to the transformation is that Great Wall Motors is evolving from an industrial company with the production of automobiles as its core business to a technology company with research and development as its core competitiveness.
This trend can be clearly observed from the 2021 Science and Technology Conference (Great Wall Science and Technology Festival), in 2021, Great Wall Motors held a science and technology conference with unprecedented strength, at this science and technology conference, Great Wall Motors showed the major strategic scientific and technological achievements that have been developed or are being developed, allowing people to see the prototype of a global technology company.
According to the financial report, in 2021, Great Wall Motor's R&D investment is 9.07 billion yuan, an increase of 76.05% year-on-year, and the operating income accounts for 6.65%, which can also be included in the ranks of one percent of the 4,000 A-share companies.
After years of intensive scientific research investment, Great Wall Motors has become one of the most high-quality companies with scientific and technological attributes in the automotive industry and even the overall A-share market. In terms of technical achievements, Great Wall Motors has not only thoroughly mastered the core technologies such as engines, gearboxes and chassis, but also has three major technology brands of "lemon", "tank" and "coffee intelligence", and is at the top of the world in the field of cutting-edge technologies such as internal combustion engines, hybrids, pure electric vehicles, power batteries, hydrogen fuel cells and intelligent driving.
In the field of internal combustion engines, the tank 500 just listed by Great Wall Motors is equipped with a 3.0T+9AT power system, of which the 3.0T engine is the strongest 3.0T engine in China, the 9AT transmission is the most advanced transmission in China, and the performance indicators of the engine part have exceeded the volkswagen or Mercedes-Benz engines of the same level.
In the field of hybridization, the Wei brand under Great Wall Motor has been fully hybridized, and its mocha, latte and macchiato are all mainly hybrid models, and the comprehensive 100-kilometer fuel consumption has been reduced to less than 5L.
In the field of pure electricity, the annual sales of the Euler brand under great wall have exceeded 130,000 vehicles, entering the first camp of the domestic new energy vehicle market.
In the field of power batteries, Great Wall's Hive Energy has thoroughly mastered the core technologies such as battery materials, batteries, modules, PACK, BMS, etc., and has launched the world's first cobalt-free material and quaternary material cell products, and is also the world's first battery manufacturer to successfully develop a cobalt-free battery. In the 2021 power battery shipment ranking, the hive has entered the top 10 in the world.
Hydrogen energy industry is also an important part of Great Wall Motors, after years of strategic investment, Great Wall has established five major R & D centers in Shanghai, Baoding, Canada, Japan, Germany, etc., and has achieved the intellectual property rights of six core technologies and products of "stacks and components, fuel cell power generation and components (controllers, etc.), IV. hydrogen storage bottles, high-pressure hydrogen storage valves, hydrogen safety, liquid hydrogen processes".
In the field of automatic driving, in the field of intelligent interconnection, in the field of more advanced laminated battery production, the Great Wall has also made impressive progress, limited by space, we will not analyze them one by one. In short, today's Great Wall is more and more showing the potential of a global technology company.
Write at the end
On March 30, the official announcement of the earnings report, Great Wall Motors, which has been in a slump for a long time, rose strongly by 5.51%, creating the largest increase in the past six months. There is reason to believe that excellent financial reports and excellent operating performance have given Great Wall investors a reassurance pill, and after about half a year of continuous decline, Great Wall Motors has ushered in the best investment opportunity.