标题：Great Wall MotorAfter Spring Festival restocking;H6 sales hit new high
发布日期：2016-04-08 10:37:39
内容： What's new In March, sales volume rose 3.2% YoY & 40.9% MoM to 83,531(SUVs +6.2% YoY to 68,175, pickups -2.1% to 10,624, sedans-20.1% to 4,731). In Jan~Mar, accumulated sales volume rose5.7% YoY to 233,426 units (SUV +9.6% YoY to 192,357). Comments Seasonal restocking; H6 sales hit a new high. In March2016, H6 sales hit a new high of 46,075. We attribute the strongsales to restocking after Spring Festival. H6 sales in March rose39.4% MoM. The H6 output in March was only 42,723 units andthe new sales record was mainly due to inventory digestion. AfterSpring Festival, end-user demand started to recover, which wasthe key driver behind the strong H6 sales. H6 capacity to further expand; new H2/H6 models tochallenge product competitiveness. As H2 production hasnow been transferred to Xushui (a county in Hebei), H6 capacityin Tianjin will further expand, creating room to launch the newH6 model. In the meantime, the H2’s capacity pressure will alsobe eased. In 2H16, the launch of new H2 & H6 models willfurther drive up sales volume. However, the rising sales andlower H6 price might challenge the differentiation andcompetitiveness of the two models. Economical SUV price under pressure. The Geely Boyueintroduced March 26 puts price pressure on 2016’s economicalSUV market due to its competitive price. Moreover, the ramp-upof GAC GS4 and the operation of new capacity in 2H16 will alsoincrease competition in the SUV market. In March, the GWM &Changan SUV price cuts already suggest price pressure andprofitability will be the major concerns in 2016. Valuation and recommendation Maintain HOLD for both the A-share and H-share with TPof Rmb7.50 and HK$6.50. Risks: lower-than-expected sectordemand; tougher competition.
发布日期：2016-04-08 10:37:39
内容： What's new In March, sales volume rose 3.2% YoY & 40.9% MoM to 83,531(SUVs +6.2% YoY to 68,175, pickups -2.1% to 10,624, sedans-20.1% to 4,731). In Jan~Mar, accumulated sales volume rose5.7% YoY to 233,426 units (SUV +9.6% YoY to 192,357). Comments Seasonal restocking; H6 sales hit a new high. In March2016, H6 sales hit a new high of 46,075. We attribute the strongsales to restocking after Spring Festival. H6 sales in March rose39.4% MoM. The H6 output in March was only 42,723 units andthe new sales record was mainly due to inventory digestion. AfterSpring Festival, end-user demand started to recover, which wasthe key driver behind the strong H6 sales. H6 capacity to further expand; new H2/H6 models tochallenge product competitiveness. As H2 production hasnow been transferred to Xushui (a county in Hebei), H6 capacityin Tianjin will further expand, creating room to launch the newH6 model. In the meantime, the H2’s capacity pressure will alsobe eased. In 2H16, the launch of new H2 & H6 models willfurther drive up sales volume. However, the rising sales andlower H6 price might challenge the differentiation andcompetitiveness of the two models. Economical SUV price under pressure. The Geely Boyueintroduced March 26 puts price pressure on 2016’s economicalSUV market due to its competitive price. Moreover, the ramp-upof GAC GS4 and the operation of new capacity in 2H16 will alsoincrease competition in the SUV market. In March, the GWM &Changan SUV price cuts already suggest price pressure andprofitability will be the major concerns in 2016. Valuation and recommendation Maintain HOLD for both the A-share and H-share with TPof Rmb7.50 and HK$6.50. Risks: lower-than-expected sectordemand; tougher competition.
