Prior to this, Deutsche Bank issued a second report to express its strong optimism for Weilai, saying that Weilai automobile may become the next iconic automobile brand, and maintain its buy rating of Weilai. Based on the revenue expectation of 2021, it gives EV / sales valuation of 7.5 times, with a target stock price of $24.
According to the Deutsche Bank report, in terms of market operation, the net recommendation rate of Weilai customers is even higher than that of BMW and Mercedes Benz, ranking first among the mainstream passenger car brands in China. In terms of technology research and development, Weilai will officially announce the full electric car ee7 by the end of this year, and its hardware sensor kit will be improved, and L4 automatic driving will be realized by 2022.
In the long run, with the increase in the popularity of pure electric vehicles and the increase of word-of-mouth communication, consumers will have a better understanding of the products and services of Weilai automobile. Deutsche bank analysts believe that Weilai automobile can occupy a higher share in the high-end market.
The market operation has achieved initial results, and the customer introduction rate is high
Deutsche bank analysts believe that, as a new brand, although the sales volume of Weilai is not as good as that of Tesla and other big brothers, it has gained a good reputation in the market and is regarded by more and more customers as a high-quality and high-end brand with first-class technology and service.
In particular, Weilai has gained a wave of core users who can be called spontaneous water army through its extreme service. The Deutsche Bank report emphasizes that in the first half of 2020, Weilais customer introduction rate has risen to 62% (compared with 52% in 2019).
At the same time, Deutsche Bank cited the research of e-car.com. In the first eight months of 2020, Weilai led Chinas mainstream passenger car brands with a score of 53.64%, surpassing Tesla (52%) and BMW (42%).
Weilais brilliant achievements are inseparable from its active marketing and excellent service.
From 2016 to 2018, Weilai spent a total of 8.831 billion yuan on sales management, and wanted to create Weilai ecology through user operation, offline experience store and online app.
In terms of product quality, Deutsche Bank cites the research data of jundi - based on the number of quality problems encountered by car owners during the period of car ownership from 2 to 6 months, the quality reliability of Weilai automobile ranks first in the pure electric vehicle market and is ahead of Tesla, while Weilai ES6 ranks first in the medium-sized pure electric vehicle market and surpasses Tesla Model3.
Technology research and development: ee7 will be released soon, and L4 automatic driving will be realized
For example, the xpilot 3.0 autopilot system was launched in April this year and was well received by the market. However, the navigation on pilot pilot function of Weilai was delayed only five months later and was slow to respond to the market.
In this regard, Deutsche Bank analysts expect that Weilai new model ee7 will be officially released on nioday in December this year, and will be put into mass production by the end of next year. This ee7 is a fully automatic car with 5g Internet of vehicles technology. The most interesting thing is that it can realize L4 level automatic driving, which will ease investors worries about the R & D roadmap of Weilai technology.
Since the fourth quarter of 2018, Weilais R & D department has laid off more than 30%. In this regard, Deutsche Bank analysts believe that in order to offset the impact of layoffs on R & D, Weilai automobile is accelerating the recruitment of employees, especially auto driving R & D personnel, to ensure the smooth launch of ee7 and the speed of technology development faster than its competitors.
Production capacity breakthrough, delivery volume in the third and fourth quarters will reach a new high
At present, the supply of Weilai automobile is in short supply, and the delivery volume mainly depends on the production capacity of Jianghuai Automobile factory.
Li Bin, CEO of Weilai, mentioned in the second quarter financial report conference call that the full supply chain capacity of Jianghuai Automobile factory will be ready at the end of August and early September, and the monthly output of Weilai automobile will jump from less than 4000 to 4500-5000.
Based on this, Deutsche Bank analysts estimate that Weilai will deliver 11500 and 14000 vehicles in the third quarter and the fourth quarter respectively. At the same time, weilaixins ec6suv began to be delivered at the end of September. On top of the two, Deutsche Bank analysts predict that the delivery volume and profit of Weilai in the third and fourth quarters will reach a record high.
In addition, two developments of Weilai in September also strengthened the bullish outlook of Deutsche Bank analysts on Weilai
Weilai recruited charging partners from the whole country and deployed a total of 30000 destination direct flow piles. For all the partners who are willing to share the fast charging resources and are free of service fees for users of Weilai, Weilai will provide construction and operation subsidies of 1000 yuan / year for each pile, with a total subsidy period of 3 years and a total subsidy amount of 100 million yuan.
This move is interpreted as the financial problems that perplex Weilai have been solved. On August 31, Weilai automobile announced the issuance of 88.5 million American Depository shares (ads), which is expected to raise more than $1.7 billion, making it the largest additional issue in Chinas high-end intelligent electric vehicle industry. At that time, Weilai automobile said that the amount raised this time would be mainly used to increase its holding of shares in Weilai China, exercise the share repurchase right of Weilai China, research and development of automatic driving technology and the expansion of global market. Analysts at Deutsche Bank believe that China is trying to subvert the auto industry with the support of powerful technology giants and ambitious local governments. Deutsche Bank predicts that Weilai, Xiaopeng, ideality and Weima will become the top four of Chinas new automobile manufacturing forces and compete with Tesla for a long time. Among them, Weilais brand awareness is stronger and its sales volume is higher. It focuses on the high-end SUV segment market and has proven operation experience, so it can be a leader. Source: Wall Street news editor in charge: Zhong Qiming_ NF5619
This move is interpreted as the financial problems that perplex Weilai have been solved. On August 31, Weilai automobile announced the issuance of 88.5 million American Depository shares (ads), which is expected to raise more than $1.7 billion, making it the largest additional issue in Chinas high-end intelligent electric vehicle industry. At that time, Weilai automobile said that the amount raised this time would be mainly used to increase its holding of shares in Weilai China, exercise the share repurchase right of Weilai China, research and development of automatic driving technology and the expansion of global market.
Deutsche Bank predicts that Weilai, Xiaopeng, ideality and Weima will become the top four of Chinas new automobile manufacturing forces and compete with Tesla for a long time.