GAC Group (601238): Weak market growth and joint expansion help stabilize performance

GAC Group (601238): Weak market growth and joint expansion help stabilize performance

Event: On April 30, 2019, GAC Group disclosed the 2019 first quarter report.

In the first quarter of 2019, the company achieved a total operating income of 143.

7 ‰, an average of 26 in ten years.


Attributable net profit 27.

8 ‰, 28 years ago.


Net profit after deduction to mother 22.

1 ‰, a decrease of 41 per year.


Opinion: Weak market performance growth, short-term performance pressure gap.

In the first quarter of 2019, the automotive market continued to weaken, and the company’s operations were under pressure.

In the first quarter of 2019, the company produced and sold 47 cars.

20,000 and 49.

50,000 vehicles in the past ten years4.

42% and 2.


In 2019, the automotive market continued its slump, model promotion efforts increased, and the company’s overall operating performance fell sharply.

Independent brands have grown significantly, and joint 武汉夜生活网 ventures have continued to grow.

In the first quarter of 2019, autonomous and joint venture modules showed a differentiated trend.

GAC Passenger Cars achieved sales of 8.

80,000, 41 in the past ten years.


GAC Fick achieved complete vehicle sales2.

20,000 vehicles, a significant decrease of 41.


Japanese joint venture modules such as GAC Toyota and GAC Honda performed well and achieved high growth against the trend.

GAC Honda achieved sales of 18.

80,000 vehicles, an increase of 11 in ten years.


GAC Toyota achieved sales 16.

20,000 vehicles, an increase of 45 in ten years.


In 2019, GM6, mid-range remodeling GS8, replacement GS4 and other self-owned brand new cars will be launched on the market. Aion S, pure electric B-class SUV and other new cars will be launched soon.

A number of new cars are expected to be listed, helping the company’s sales to stabilize.

The business of autonomous power systems was optimized and the joint venture’s production capacity was adequately guaranteed.

GAC Passenger Cars established Qisheng Power, a wholly-owned subsidiary of the company, focusing on the investment projects of power systems such as engines and gearboxes.

The power system business realizes independent operation, which can flexibly respond to customer needs and realize external sales of powertrains.GAC Toyota’s new energy production project is progressing smoothly and is scheduled to be completed and put into production in 2022.

The new base is expected to increase the production capacity of the vehicle by 400,000 units, breaking through the existing production scale, facilitating the introduction of more new joint venture products and helping the joint venture system to grow steadily.

Earnings forecast and grade: The weak automotive market continues and market competition may intensify. We estimate that the company’s operating income for 2019-2021 will be 74.829 trillion and 96 billion US dollars.

03 yuan, 1.

20 yuan, 1.

34 yuan.

New vehicle launches escorted steady growth, business optimization improved operational performance, and we maintained the company’s “overweight” rating.

Risk factors: The growth rate of the automobile market is rapidly falling; risks for new projects are slower than expected; industrial policies are gradually accelerating to exceed expected risks.