Jiangling Motors: Bullish on the future of SUV

Overall sales rose 33% year-on-year in February, up 37% per cent in January-February, better than expected, share prices are undervalued, and reiterated overweight ratings. It is estimated that 10, 11, 12 EPS is 1.98 yuan, 2.58 yuan (11 performance still keep up space), 3.04 yuan, the share price is equivalent to 11, 12 PE is 11 times times, 9.5 times times respectively. February data, although not year-on-year, but the cumulative still achieve 37% growth, optimistic about our new SUV wins the future, is expected to 2 quarters of sales will gradually reflect, the company's 2-quarter performance has the possibility of the chain upward.　　We are optimistic about the company's SUV prospects, light truck and the steady growth of light passenger, the share price is undervalued, reiterated overweight rating.　　Although February this year compared with the same period last year is not comparable, but February overall sales of the company still rose 33%. Although due to the Spring Festival, February effective sales time is relatively short, but the company to achieve sales volume of 12,585 vehicles, an increase of 33%, including the total light passenger sales year-on-year growth 21%,JMC light card growth of 52%, pickup and SUV growth of 25% year-on-year. 11 years ago two months of sales of 33,551 vehicles, an increase of 37% per cent, better than the market expectations.　　We expect sales to grow by about 40% per cent year-on-year in the 1 quarter of 11. Bullish SUV wins sales and profitability prospects. As the river Bell to enter the field of passenger car important products, Jiangling wins positioning in high-end, and the listing at the end of 10.　　1 quarters of sales have not yet been reflected, is expected to gradually increase the volume of 2 quarters, as part of the company and the full shun share, once on the scale, its profitability will be quickly upgraded, SUV wins the volume will bring the growth of the company's performance elasticity. Light truck market share continues to rise.　　February company JMC Light Card sales of 4,802 units, an increase of 52%, the company's product target positioning in the high-end market, subsidized policy withdrawal effect is limited, the first two months of light card sales reached 12,804, year-on-year growth of 44%, above the industry average growth, light card market share continue to improve. Full-shun light passenger still maintain rapid growth. February Light passenger sales of 3,409 vehicles, an increase of 21%, January-February cumulative sales of 9,480 units, an increase of 39%, we are optimistic about urban logistics use of light passenger market segments, is expected to continue to maintain rapid growth.