GAC Group’s (601238) 2019 Interim Report Comment: Performance-Restrained Independent Brands Await Recovery

GAC Group’s (601238) 2019 Interim Report Comment: Performance-Restrained Independent Brands Await Recovery

Company dynamics The company released the semi-annual report for 2019 and 佛山桑拿网 achieved operating income of 283.

5.1 billion, down 23 annually.

79%, net profit attributable to mother 49.

1.9 billion, down 28 each year.


Event comment Promotional activities affect short-term profitability. It is expected to improve in the third quarter due to the sluggish sales of independent brands and the company’s revenue will decrease.

In the first half of the year, the passenger car business achieved sales income of 168.

3.9 billion, down 36 each year.

70%, sales of automobile-related trade achieved 104.

25 ppm, an increase of 13 in ten years.

01%, financial and other sales revenue 10.

87 trillion, down 20 a year.


Price reduction promotions have led to a decline in the company’s Q2 gross profit margin growth, and the monthly declines have reached 14 respectively.

09pct and 6.

61pct, Q3 is expected to improve sequentially.

Under the pressure of self-owned brand sales, Aion S started the new energy era. In the first half of the year, the cumulative sales volume of GAC passenger cars was 18.

690,000 vehicles, a decrease of 30.

30%, GS5 and GM6 contributed a certain increase, but the sales of main models GS4, GA8 and so on fell, dragging down the overall sales performance; operating income of 190.

35 ppm, a decrease of 33 per year.


In terms of new energy vehicles, GAC New Energy’s production and sales exceeded 10,000 units in the first half of the year, and sales continued to grow 73.

46%, Aion S has exceeded 50,000 orders since its listing, and Aion LX will be officially put into production in September.

Japanese brands performed well, with GAC Honda and GAC Toyota bucking the trend and growing. GAC Honda’s cumulative sales in the first half of the year were 39.

450,000 vehicles, an annual increase of 16.

41%, Accord, Fit, Lingpai and other vehicle sales increased by 57%, 56% and 31% respectively; operating income of 518.

95 ppm, an increase of 15 in ten years.


GAC Toyota sold 31 in the first half of the year.

120,000 vehicles, an increase of 21 per year.

86%, the increase mainly comes from the new model C-HR launched in the middle of last year; realized operating income of 448.

80 ppm, an increase of 20 in ten years.


The investment proposal estimates that the company’s EPS will be 0 from 2019 to 2021.

90 yuan, 1.

09 yuan, 1.

21 yuan, the corresponding PE is 13 times, 10 times, 9 times, the first coverage, given the “overweight” rating.

Risks indicate that car sales are less than expected.