长城汽车(02333.HK)公司转型方向笃定，静待二次成长

See the last page for disclaimer Page 1 of 3 Equity Research Equity Research Report 证 券 研 究 报 告 Flash Note 股票研究 快讯 [Table_Info2] 长城汽车 Great Wall Motor (02333 HK) [Table_Info1] 汽车行业 Automobiles Sector 证券研究报告 [Table_Title] Flash Note: Great Wall Motor (02333 HK) Ivan Wu 吴凱翔 (852) 2509 2649 快讯： 长城汽车 (02333 HK) ivan.wu@gtjas.com.hk 6 February 2023 [Table_Summary] The Company's Transformation Direction Has Been Determined; Waiting for the Second Growth 公司转型方向笃定，静待二次成长  The unaudited results of Great Wall Motors (GWM, or the "Company") for the full year of 2022 was lower than our and market consensus expectations, mainly due to the Company's strategic adjustment and year-end bonus accrual. The Company is undergoing transformation; its operations remains under pressure in the short term. Currently, we give the Company a "Buy" investment rating, with a target price of HK$15.93 per share, corresponding to 9.6x 2023PE. Considering that the Company has taken the initiative to lower its sales target for 2023, and is fully committed to opening a new era of new energy vehicles (NEV), we will adjust our target price and earnings forecast in the next Company Report, but maintain the investment rating of "Buy".  The strategic transformation achieved outstanding results, and all financial indicators of the Company's profitability in 2022 recorded growth. The Company's 2022 revenue increased slightly yoy. Operating profit increased by 25.75% yoy, mainly due to the Company's enhanced product strength and enhanced profitability of vehicle models. The Company's brand performance has improved significantly, and the ASP of vehicles was RMB128,700, up by 20.8% yoy. The proportion of sales of models above RMB200,000 also rose to 15.27%. Even when the auto industry experienced relatively severe impact from the Covid pandemic, the Company's 2022 net profit attributable to shareholders hit a record high, recording double-digit yoy growth to RMB8.279 bn. This fully reflects the success of the Company's strategic transformation.  In the post-pandemic era, the Company's overseas sales are expected to maintain strong growth in 2023. In 2022, the Company's overseas sales hit a record high, recording 173,200 vehicles, a yoy increase of 21.28%. During the same period, the Company's NEVs were successfully launched in Europe, ASEAN, Latin America, the Middle East, Africa and Oceania, making every effort to enhance its overseas strategy. In 2023, the Company will focus on the "One Great Wall" strategy to accelerate overseas business and add new impetus to the Company's growth.  The Company's transformation direction has been determined, the One Great Wall strategy is clear, and the comprehensive electrification platform will help to accelerate growth. The Company’s Haval new energy series will adopt a new channel to officially move towards new energy transformation, and make corresponding adjustments in brand and personnel. WEI