Great Wall Motor (601633): August sales against high growth equity incentives highlight long-term development confidence

Great Wall Motor (601633): August sales against high growth equity incentives highlight long-term development confidence
The company recently announced August sales, and the company achieved sales of 7 in August.20,000 vehicles, +9 in the past.52%; of which Haval / Wey / Pickup are sold separately 5.20,000 vehicles / 0.70,000 / 1.160,000, at least +17.04% /-31.2% / + 12.7%.The company’s recently announced stock and equity incentive budgets demonstrate its confidence in development. In August, sales increased against the market and F5 / F7 provided the main positive increase.The CIC announced that the sales volume of narrow passenger cars in August was 156.40,000, at least -9.9%; the company achieved sales of 7 in August.20,000 vehicles, +9 in the past.52%, sales growth rate is significantly higher than the industry; of which Haval / WEY / pickup sales of 5 respectively.20,000 vehicles / 0.70,000 / 1.160,000, at least +17.04% /-31.2% / + 12.7%.In terms of different models, Haval H6 / M6 achieved sales of 2 respectively.5/0.670,000 vehicles, at least -6% / + 62.6%.F5 / F7 sales were 1689/10036 units in the month, as Haval F5 / F7 were listed in October / November last year, providing a major positive increase. Equity incentives streamline the incentive mechanism and demonstrate the company’s confidence in long-term development.The company’s recently announced budget stock and stock budget incentive plan draft plans to grant total equity1 to 1,928 incentive objects including directors, executives and core personnel.8.5 billion shares, the grant price of the budget stock is 4.12 yuan per share, the exercise price of the stock budget is 8.23 yuan / share, the first approved supplementary stock and stock replenishment performance evaluation target, the dual evaluation target for net profit and total sales volume, further establish and improve the incentive mechanism, and fully mobilize the enthusiasm of the company’s directors, executives and core personnel, Interest binding, highlighting the company’s long-term development confidence. Expansion of production capacity against the market, looking forward to new platforms and new products, maintaining the level of “prudent increase”.At present, the Yongchuan factory is about to be completed and put into production. It mainly produces a new model of the Great Wall pickup truck. The Rizhao factory is under planning 合肥夜网 and construction.The company’s domestic overall plan for eight production bases, production capacity expansion against the market expansion, expansion of product categories to make up for shortcomings.Beginning in 2020, the company is expected to launch a new platform. It is expected that a number of new models will be launched. At the same time, the cooperation model with BMW is expected to be mass-produced in 2021. The product is expected to enter a new cycle.In the medium and long term, the company’s opening of the parts system, expedited product exports, fair incentives, and consistent benefits will all enhance the company’s medium and long-term competitiveness.It is expected that the company’s net profit attributable to its mother for 2019-2021 will be 42.1/65.2/69.900 million, maintain “prudent increase” rating. Risk warning: industry sales increase sharply; the company’s new car sales exceed expectations; cooperation with BMW is lower than expected