Xiaokang's plan to be renamed Selis to strengthen Huawei label, how can third -tier car companies support the market value of 100 billion yuan

According to the news on July 12, the Red Star Capital Bureau, Xiaokang (601127.SH) issued an announcement saying that it plans to change the company's Chinese name from "Chongqing Xiaokang Industrial Group Co., Ltd." to "Selis Group Co., Ltd.", and company securities abbreviation From "well -off shares" to "Selis", the securities code "6011127" remains unchanged.

The announcement states that the renaming is to facilitate investors to accurately understand the current company's positioning, make the company name match business and strategic planning, uniformly uniformly the company's brand image and enhance brand value.

Selis is the name of the product brand of the holding subsidiary of Xiaokang Co., Ltd. Industry insiders pointed out to the Red Star Capital Bureau that the renamed this time aims to strengthen the cooperative relationship between the market and Huawei in the market, and at the same time, it also shows the company's determination to continue to deeply cultivate the intelligent new energy vehicle field.

Data show that from January to June this year, the cumulative production and sales of new energy vehicles in Xiaokang shares were 47,700 and 45,600, respectively, with a year-on-year increase of 255.12%and 204.51%, respectively.

While the sales volume exceeded expectations, the stock price of Xiaokang shares also rose from less than 40 yuan/share in early May to 74.7 yuan/share on July 12, an increase of more than 80%; Once more than 90 yuan/share.

The industry has always had a lot of questions about Xiaokang's shares. From the fundamental point of view of the company, Xiaokang's shares are far from the industry leader. It can only be regarded as a "three -line" car company, but its market value exceeds 100 billion yuan.

Three -line car companies 100 billion market value

As a listed car company with a market value of 100 billion yuan, the non -net profit of Xiaokang shares is negative from 2018 to 2021.

From 2018 to 2021, the revenue of Xiaokang shares was 20.24 billion yuan, 18.132 billion yuan, 14.302 billion yuan, 16.718 billion yuan, and the non-net profit was -152 million yuan, -884 billion yuan, -2.308 billion yuan,- 2.793 billion yuan.

The company's performance has declined across the board, which is related to the full deployment of new energy from Xiaokang in 2017 and invested huge investment. During this period, the stock price of Xiaokang shares was also low, less than 20 yuan/share for a long time, and even less than 10 yuan/share in the first half of 2020.

In 2021, Xiaokang's shares ushered in a turning point in cooperating with Huawei. In March 2021, Xiaokang's official announcement officially reached a cooperative relationship with Huawei, and the two parties signed a memorandum of cooperation in the new energy vehicle field. The stock price of Xiaokang also rose rapidly, rising several times in less than half a year.

However, from the perspective of the company's fundamentals, the performance of Xiaokang shares is not ideal.

According to the data of Jian Xinxin, the domestic independent third -party securities investment fund evaluation agency, the overall rating of the profitability of Xiaokang shares D, cost and cost control are extremely chaotic. The profitability is extremely unstable, ranking 4403 among the 4708 companies in the market; the overall rating CCC of the capital structure is ranked 3866 among the 4708 companies in the market. The overall asset quality rating CCC has a great impact on the company's development. The market 4708 companies ranked 3772.

Among the 24 A -share car manufacturing companies, the profitability, cash flow, capital structure, asset quality, and operating efficiency of Xiaokang shares are the countdown.

In 2021, the gross profit margin of Xiaokang shares was 3.77%and the net interest rate was -15.74%. Both were significantly lower than the industry average (18%, 2%). In 2020 and 2021, the company's net loss was 1.729 billion yuan and 1.824 billion yuan, respectively. In the first quarter of this year, the net loss was 839 million yuan, which continued to expand.

From 2018 to 2021, the net value of the cash and cash equivalents of Xiaokang shares was -1.417 billion yuan, -635 million yuan, -1.379 billion yuan, and 384 million yuan, respectively. Although it was a net increase in 2021, it was mainly due to the addition of 3.033 billion yuan in investment. It should be noted that in 2021, the cash flow generated by the company's operating activities was first negative, reaching -987 million yuan.

As of December 31, 2021, the total liabilities of Xiaokang shares were 24.295 billion yuan, accounting for 75.86%of the assets, which was significantly higher than the industry average of 58%. In 2021, the average net asset yield of well-off shares was -27.8%.

In addition, other receivables of Xiaokang have increased significantly, reaching the highest historical record of 1.611 billion yuan in 2021, an increase of 12 times from the 2019 record of 132 million yuan.

Rename Selis, strengthen cooperation with Huawei

Cooperating with Huawei to build a car is the historic opportunity of a well -off shares.

Industry insiders pointed out to the Hongxing Capital Bureau that at that time, the cooperation model of Huawei and Xiaokang made the imagination of Xiaokang's shares suddenly improved. At one time, it was rumored that Xiaokang shares on the market represent Huawei Automobile. Huawei repeatedly reiterated not to build a car, which increased the value of Xiaokang's shares. In addition, the stock price of Xiaokang's shares was underestimated before, and the amount of smaller volume was suitable for hype, so many institutions entered the market.

In the Shanghai International Auto Show in April 2021, Selis announced that it officially reached in -depth cooperation with Huawei to launch Selus Huawei SF5. Within two months, the company's stock price rose from less than 30 yuan/share to over 80 yuan/share.

However, the SF5 is not recognized by consumers because of Huawei Halo. Its sales of less than 10,000 units in 2021 were discontinued at the beginning of this year. The SF5, who was put on hold halfway, has achieved good results in Selis and Huawei's pro -son, the new high -end brand AITO.

In December last year, the first model of AITO's model M5 was officially unveiled. In March of this year, it was launched. It was delivered more than 5,000 units in May and exceeded 7,000 units in June. As of June 30, the cumulative sales of M5 in the question world exceeded 20,000 units.

On July 4th, the second model of AITO's model was officially released. The new car had a 2 -hour order of 10,000 and a 4 -hour break of 20,000.

Selis has been inseparable from Huawei. Although Xiaokang has repeatedly reiterated that it is not Huawei's "foundry" many times, many people do not recognize it.

Industry insiders pointed out to the Red Star Capital Bureau that the renamed this time aims to strengthen the cooperative relationship between the market and Huawei in the market, and at the same time, it also shows the company's determination to continue to deeply cultivate the intelligent new energy vehicle field.

But the iron still needs to be hard.

In the first quarter of this year, although the revenue of Xiaokang's shares increased by 56%to 5.131 billion yuan, net loss also expanded by 57.54%year -on -year to 839 million yuan. As of the end of the first quarter, the liabilities of the well -off shares reached 20.693 billion yuan, while the money funds in hand were only 6.355 billion yuan.

Whether Xiaokang's shares can support the market value of 100 billion yuan will eventually talk about the market.

Red Star News reporter Wu Danruo

Edit Yu Dongmei

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