Great Wall this year's profit rate or Super Ferrari

Analysts claimed that the Great Wall is expected to become the next Hyundai Motor, and analysts predict that China Great Wall Motor will be the world’s highest profitable car company this year, surpassing Ferrari, which is known for its high profit margins.

The next modern

According to Bloomberg, Great Wall Motors is independent of foreign partners and government, and it is relatively rare among Chinese automakers, thus eliminating the need to divide profits and endure external bureaucracy.

From the trough in 2008 to the present, Great Wall Motor's share price has soared by 60 times. Great Wall Chairman Wei Jianjun has also become Asia's richest auto company executive. With the preparation to build China's first global auto brand, the wealth reaches 6.5 billion. Dollars. According to Bloomberg's rich index, Wei Jianjun’s current wealth value is $1 billion higher than that of modern chairman Zheng Mengjiu.

Bill Russo, former vice president of Chrysler Northeast Asia and founder and president of Synergistics Limited, said: “Wei Jianjun is a very professional and true entrepreneur. If there are one or two in the next decade (Chinese mainland) Car companies can survive in the wrestle with overseas competitors, then the Great Wall Motor is definitely one of them." Luo Wei even said that the Great Wall is expected to become the next Hyundai Motor.

On July 5th, Janet Lewis, an analyst at the Macquarie Group in Hong Kong, set the target price of the Great Wall stock price at US$45.30 in 12 months, an increase of approximately 37% from the current year-on-year increase. On the same day, the Great Wall’s share price in the Hong Kong stock market increased by 6.2% to close at HK$34.25 per share.

Not long ago, Wei Jianjun once stated that by 2015, Haval will exceed Chrysler Jeep and become the world’s highest-selling SUV brand; by 2015, the total sales volume of the Great Wall will reach 1.3 million, which is about twice the current level.

Profit this year or win the world

According to Max Warburton, an analyst at Sanford C. Bernstein, although Great Wall Motor is not as big as a multinational giant in terms of sales volume, lower costs guarantee operating profit and Great Wall’s profit margin is expected this year. Will reach 16.4%, more than Ferrari, become the world's highest profit rate.

As a reference, in 2012 Great Wall Motor achieved a net profit of 5.692 billion yuan, an increase of 66.14%; operating revenue of 43.16 billion yuan, an increase of 43.4%; vehicle sales of 621,400 units, an increase of 34.31%; total profit of 6.841 billion, an increase of 65.62%; The profit rate was 15.85%; earnings per share was 1.87 yuan, an increase of 53.3%.

In 2012, Ferrari’s operating income was 2.433 billion Euros, an increase of 8% year-on-year; operating profit was 350 million Euros, an increase of 12.1% year-on-year; and net profit was 244 million Euros, a year-on-year increase of 17.8%. Its operating profit margin is 14.4%, and its net profit rate is 10.0%.

The average of 16 analysts surveyed by Bloomberg on Great Wall Motor’s net profit this year was US$1.1 billion, or approximately RMB7 billion, an increase of 24% year-on-year.

Military disciplinary assistance for SUVs

According to Bloomberg News, Great Wall Motors staff conducted military training for one month under the guidance of the Chinese People's Liberation Army last summer. A Wang Xing researcher of the Great Wall recalled: “The military training is very rigorous, not only new employees, but even promoted. Older employees also need to participate, even including management personnel who have become department heads, and they need to repeat military training."

Regarding the intention of the Great Wall military training, Bloomberg quoted the official website of the Great Wall saying that the Great Wall arranged for employees to practice marching and push-ups in military training in order to cultivate endurance, increase willpower, and understand corporate culture.

Bloomberg also said that Wei Jianjun himself set an example and advocated emphasis on discipline and hard work. Zhang Jian, a strategic consultant for Wei Jianjun, said that Wei Jianjun, who is a billionaire, now only smokes 10 yuan a pack of Zhongnanhai cigarettes, and once criticized after the meal that some dealers left too many meals on the table; Wei Jianjun usually Stay overnight in a room near the office, and start wearing a gray suit at 7 o'clock in the morning.

Wei Jianjun, born in 1964, confessed that he was greatly influenced by his father. His father used to be an artillery soldier of the People's Liberation Army. After retiring from the army, he started his own business in boiler manufacturing.

For example, Luo Wei compared the disciplinary nature of the Great Wall and other Chinese companies: “I have been to other Chinese factories. Once at lunch time, everyone is running toward the canteen at the same time. This is not the case for Great Wall Motors.”

The biggest crisis is complacency

Warburton said that Chinese auto companies are still 10 years away from launching their first globally competitive vehicle, and there is roughly one to two product cycles in the auto industry. In February of this year, its hiring experts analyzed the Great Wall Haval H5 “deconstruction”. In the report, Warburton pointed out that although the SUV has excellent driving performance, the transmission vibration performance and braking system perform poorly. However, Warburton said that the updated version of Haval H6 has achieved "a substantial leap forward."

Last year, Great Wall Motors suffered from "growing pains." In Australia, it was discovered by relevant departments that asbestos components that may be harmful to the human body were used. As a result, thousands of cars were recalled locally together with Chery.

For this, Wei Jianjun said that the Great Wall’s ability to develop technology will determine the future. During the Third Great Wall Motor Technology Festival on May 31, Wei Jianjun was interviewed by Bloomberg at the Great Wall Motor Factory in Baoding, Hebei. He said: “We must have core technologies and make breakthroughs. The biggest crisis is the possibility of complacency.”