US "Fortune" magazine announced the 2017 ranking of the world's top 500 companies on the evening of July 20th, and Shanghai Automotive Group Co., Ltd. (hereinafter referred to as SAIC Group) ranked 500th in the world with sales revenue of 113.86 billion US dollars for 2016 consolidated statements. Ranked 41st, far ahead of other domestic auto companies. At the same time, as the leading enterprise in the Chinese automotive industry, SAIC ranks seventh in the global automotive industry and has surpassed world-renowned automakers such as Nissan, BMW and Hyundai. Through the persistence of innovation and transformation, SAIC Motor's operating performance has always maintained a steady growth, ranking 13 times in the world's top 500 rankings.

SAIC Motor Corporation ranks among the world's leading automakers, and the main reason for its outstanding results is SAIC Motor’s strategic goal of innovation as its theme. In 2015, SAIC Group reshaped its vision, mission and values, and adopted “innovation” as its soul and main thread, and proposed “a world-famous automobile that has become a global distribution and transnational operation with international competitiveness and brand influence. The company's new strategic positioning and its strategic transformation goal of "turning to become a comprehensive supplier of automotive products and services."

Leading advantage gradually highlights

SAIC Group ranks 41st among the world's top 500 companies, relying on solid results, and such superior performance is continuing to show. From January to June this year, SAIC Motor's total vehicle sales exceeded 3.17 million units, setting a new record high, and the domestic market's leading edge further expanded. Among them, the performance of self-owned brands was dazzling. SAIC Motor's Roewe and MGJ surged by 113% year-on-year, and SAIC Chase’s sales increased by 30% year-on-year; joint ventures made steady progress and SAIC Volkswagen and SAIC GM sold steady before passenger vehicle companies. In the top three, SAIC-GM-Wuling became the only car company in China that sold more than one million vehicles in half a year.

Looking at the domestic auto market, this achievement is not easy. In the ups and downs of the general trend of the industry, the "Matthew effect" is gradually reflected, and the status of advantageous car companies will be further consolidated.

Guo Chao Securities analyst Chao Chao believes that the high growth period of the automotive industry has gradually passed, resources are concentrated, and leading advantages are gradually highlighted. As the leading automaker of the SAIC Group, as the auto industry matures, the scale advantages begin to appear, and the degree of concentration is expected to further increase; Continuing efforts on new vehicle investment, profitability is expected to be further improved; SUV is still a fast-growing area. SAIC Motor has independently and jointly launched a number of new SUVs, which have better protection for production and sales growth. SAIC Passenger and Traditional and New Energy Vehicles are making concerted efforts, and the joint ventures Shanghai Volkswagen and Shanghai GM are in a new cycle of launching new cars, tracking 2017 Tiguan, Kodiak, Tourang, explorers, the new GL8, Baojun 510, and Roewe RX5. Series, MG ZS, Roewe i6 and many other new models are in the period of sales volume uplift, and the space in the later period is still large, and they continue to be optimistic about the leading advantages of the company.

The superior industry status means high quality investment value. Changjiang Securities believes that SAIC Motor has formed a large-scale pattern of independent joint ventures and has become a preferred choice for value investing; 1) Nearly 6% of high dividends brings the company’s strong security margin, and steady growth in performance leads to a gradual increase in the ratio of dividends to the company. The increase has increased substantially from around 30% in 2012, and the proportion of dividends from 2013 to 2015 has exceeded 50%. In 2016, the company's dividend ratio further increased to 60.23%. Based on the static dividend yield, the company's dividend yield was approximately 5.66%. 2) Under the current low market risk appetite, SAIC Motor Group is expected to enjoy a leading valuation premium as an auto absolute hegemony. The steady growth of the performance of SAIC's medium and long-term investment highlights the value.

Innovation and transformation are fast

SAIC's outstanding performance is changing the stereotype of the world's domestic auto companies. SAIC Motor’s creative and flagging SAIC Group is becoming the “golden signboard” of the Chinese auto industry.

In the “new four modernization” innovation field of “electricity, networking, intelligence, and sharing”, no one can look to the right of the SAIC Group. In terms of electrification, as the only automobile company in China that has the ability to cover the three technical routes of plug-in hybrid, pure electric, and fuel cell, SAIC's core technology of “electric drive, battery, and electronic control” has reached the leading domestic and world-class level. Launched "The world's first pure electric Internet SUV" Roewe ERX5, pure electric vehicle "Roewe-Wing Wing VISION-E" and other products, SAIC and China's largest internationally competitive power battery manufacturer Ningde era Joint ventures and cooperation, in accordance with world-class, domestic leading standards, to build a highly intelligent, green environmental protection advanced battery and battery system production base; in terms of network integration, SAIC has established an application development system for vehicle hardware facilities and vehicle-mounted Internet systems, and actively To build a harmonious ecosystem of automotive products and services, including the Roewe RX5, the world's first mass-produced Internet car, which has been on the market for only one year, with a sales volume of nearly 200,000 units. In terms of intelligence, SAIC Motors Group joined hands with an open mind in June this year. Communications giants China Mobile and Huawei to jointly promote 5G networking With the development of technology, it will seize the commanding heights of future intelligent travel. At present, SAIC Motor has completed the development of two-generation smart driving vehicle platform, as well as a vehicle networking platform integrating 5G communication technology, and has carried out automatic driving under natural traffic conditions such as highways, urban areas, and fleets. In terms of technology research, the accumulated mileage of vehicle testing exceeds 36,000 kilometers; in terms of sharing, Global Motorsport, a subsidiary of SAIC Motor, has entered 28 cities across the country and has built more than 4,500 outlets, accumulating 9,800 new energy vehicles. .

At the same time, SAIC Group actively responded to the national “One Belt and One Road” initiative and explored the key regional development markets in the world. It has initially completed the first round of international operations and its overseas influence continues to expand. At present, we have established an innovation center in the Silicon Valley of the United States and established marketing networks in 15 key countries and regions such as ASEAN, the Middle East, Africa, Europe, South America, North America, Australia and New Zealand, and established production bases in Thailand and Indonesia. Among them, SAIC-Thailand Thailand continued to reduce costs and increase efficiency. The construction of the new plant is progressing as scheduled and is expected to be put into operation by the end of the year; SAIC-GM-Wulings Indonesia's base construction is progressing smoothly and this year has been officially put into production; the Maxus Datong brand has performed well in Australia and New Zealand. The light passenger truck segment ranked first in the market.

Recall that in 2014, Chen Hong, chairman of SAIC Group, proposed that SAIC Motors will create a world-renowned auto company with an innovative spirit and lead the future of automobile life. SAIC Motor Group has not only become the best living partner for the majority of users, but also provides comprehensive and optimized travel solutions to achieve a harmonious co-existence of human-vehicle-society. As a result, the "innovation curtain" of SAIC's industrial structure upgrade and evolution has slowly been opened.