Online Reporter Economic Observer Qian Qunfang Sales of the top three independent automakers in 2018 did not meet their annual sales targets, but capital market reaction was different. In the last two days, Geely, Great Wall and BYD released sales data for 2018. The sales performance of the three automakers remained relatively stable, but they were not completed. Each one sets a sales goal. It should be noted that as of January 8, the stock prices of the three automakers are varied and varied, and the valuation of the capital market is also different.
Geely Automobile still maintained its growth year after year under the winter of the automotive market. According to sales data released by Geely Automobile, the company's sales in December 2018 were 93,333 units, down 39% over the previous year and cumulative sales volume for the year reached 1,500,800 units, an increase of approximately 20.3%. However, it is worth noting that annual sales of Geely Automobile in 2017 increased by 63% over the previous year, and in 2018 Geely Automobile did not complete the established annual sales target of 1.58 million. Based on the industry's high uncertainty in 2019, the company set its annual sales target at 1.51 million units, which was basically the same as the same period last year. Geely said it will reach 2 million annual production and sales by 2020.
The day after the announcement of the sale, shares of Geely Automobile (00175.HK) fell 7.6% on the opening day, and on January 8 Geely Automobile closed at 10.22 Hong Kong dollars, down 11 , 28%. It is worth noting that since early 2019, Geely Automobile fell 25.94% in the last five trading days, ranking first among more than 2,000 Hong Kong shares. Following the announcement of the relevant announcements, many large banks and brokers have lowered their target prices and ratings. For example, Moto has cut the Geely target by 29% to 10 yuan, and the rating is neutral.He says that Geely reduced its annual target sales and surprised the market. Maintain negative growth.
In addition, Great Wall Motor, which sold more than one million units for three consecutive years, also recorded a slight decline in stock prices after the release of sales. According to sales data released by Great Wall Motor, the company sold 133,794 vehicles in December 2018, a year-on-year increase of 6.54% in 2018. In 2018, the company sold 105.3 vehicles, a fall 1.6% compared to 0.4% in 2017. In the overall cold market situation, the market performance of the slight decline of Great Wall Motor is still stable, but this is still far from the goal of 100,000 annual sales of the Great Wall Motor in 2018.
Economic Observer Online noted that on January 8, Great Wall Motor (601633.SH) closed at 5.68 yuan on the A-share market, down 1.05%, and achieved a rise of 1.43% in five days trading. In addition, Great Wall Motor (02333.HK) closed at 2.21 Hong Kong dollars on the day, fell 2.27%, and fell 4.01% in 5 trading days. Ping An Securities Co., Ltd. analyzed the investment risks of Great Wall Motor, including three aspects: First, the passenger car market was lower than expected; third, the double risk caused by the late departure of the new company's energy. Not meeting the risk.
By contrast, BYD's excellent performance in the new power sector has brought confidence to the capital markets, and BYD is also the only auto company whose three companies raised their stock prices on January 8. Dahe Capital reported that in December 2018, BYD sales increased 33% over the previous year to 69,600 units, and annual sales increased 23% over the previous year to 520,700 units, which is in line with the expectation of the bank and a "Buy" investment rating.
Although BYD's 520,700 units annual sales still have some distance from the established sales target of 600,000 units at the beginning of last year, BYD is attractive in the field of new energy vehicles. By 2018 BYD's new vehicle sales volume was 247,800 units, and the sales target of 200,000 units was set at the beginning of 2018. The cumulative volume of fuel vehicles was 227,900 units, still far from the sales target 400,000 units by the beginning of 2018. The sales volume of BYD's new energy vehicles increased from 30% in 2017 to 50%.
Citigroup released a report saying that BYD's sales growth in December 2018 and year-round as well as the volume of sales of new energy vehicles are better than the bank's expectations, giving an investment rating and pointing out the smaller cities of the continent. Decreasing trends in demand for auto spending, car sharing and leasing, falling commodity prices or further improving BYD's long-term profitability trend.
In the Hong Kong stock market, BYD (01211.HK) closed on January 8, up 3,18% and a drop of 2.7% in five business days. In the A-share market, BYD (002594.SZ) closed at 52.88 yuan, up 2.9% and a 3.69% increase in 5 trading days.
In the past year 2018, the overall performance of the Chinese auto market was weak. According to data released by the China Automobile Manufacturers Association from January to November 2018, the Chinese market sold 25.42 million vehicles, down 1.65% over the same period last year, and the pressure on the automakers has also increased. The expected performance seriously affected the stock price trend of automotive companies.