Changan Automobile (000625): Changan Ford’s growth of independent brand performance

wwrNQKVf

Changan Automobile (000625): Changan Ford’s growth of independent brand performance
Investment Highlights Event: Company u announced July sales figures and July production was 12.80,000 vehicles, an increase of 1% a year; sales of 12.100,000 vehicles, an average of 7% in ten years.Changan Ford sold 18,072 units, an increase of 12% from the previous month.Changan Mazda sold 11,560 vehicles, an increase of 18% for the year.Chongqing Changan sold 44,872 units, an increase of 24% for the year.  Each brand performed well, and its autonomy was particularly outstanding.At the industry level, the wholesale of passenger cars was superimposed several times in July.9%, the number of insurance companies in the industry decreased by 19% each year, the zero approval data exceeded market expectations.Which 5?Cumulative insurance coverage in July increased by about 5% per year.We judge that the turning point of the industry is gradually approaching. The zero approval data from August to September is expected to turn positive. Based on the low base in the fourth quarter of last year, the industry growth rate is expected to further increase in the fourth quarter.The size of the company. In July, the company’s output increased by 8678 units compared with the previous year’s sales. Eventually, the company entered a high-temperature vacation at the end of July, and concentrated production increased.In terms of brands, Changan Ford produced 21,412 vehicles in 7 months, an annual increase of 58%, and the number of insurance companies was about 1.40,000 vehicles, social inventory increased by more than 4,000 vehicles.Independent brands performed well, Chongqing Changan’s production and sales increased by 30% and 24% each year, respectively.  Vehicle cycles continue, and operating improvements are expected to gradually materialize.The company’s new car cycle continues. On August 16, the company will usher in the launch or pre-sale of a number of heavy-duty models. Changan Ford includes Sharp ST / ST-Line, Fox Active, Taurus mid-term remodeling, Changan autonomous, heavy modelsThe cs75 plus will begin pre-sale.The listing of the new Mavericks in the fourth quarter and the localization of Lincoln models will further strengthen the Changan Ford product cycle.At the sales end, Changan Ford’s business policy gradually shifted to sales and production, and its attitude towards dealers gradually 武汉夜网论坛 improved.At the same time, on the basis of zero interest rate, a financial policy of zero down payment / zero interest rate was introduced to promote Changan Ford sales in the second half of the year.At the same time, Changan Automobile actively promotes mixed reforms and expects to reduce the impact of corresponding brand expectations on Changan Automobile’s performance.  Earnings forecasts and investment advice.In 2019, Ford and Ford ushered in a strong cycle of new products, increased sales and improved profitability.It is estimated that the net profit for 2019-2021 will be 13/51/71 trillion, and the EPS will be 0.26/1.05/1.48 yuan, maintaining the “overweight” level.  Risk reminder: The travel company’s advancement is less than expected, Changan Ford’s new model launch is less than expected, and the electrification and intelligent advancement is less than expected