China Merchants Securities International has lowered its target price for Great Wall Motor (02333) from HK$18 to HK$13, while keeping an "Accumulate" rating, according to a research report released by the firm.
The automaker's first-half net profit came in at RMB 2.465 billion, down 61.1% year-on-year, which aligns with the previously guided range of RMB 2.35 billion to RMB 2.6 billion. The sharp drop in reported earnings was primarily driven by delays in recognizing overseas scrap tax rebates and currency fluctuations.
Management has reaffirmed its full-year target of selling over 700,000 vehicles overseas. Monthly overseas sales have already climbed from roughly 40,000 units at the start of the year to more than 60,000 units, with the company aiming to surpass 70,000 units per month by year-end.
The brokerage noted that Great Wall Motor has built solid operational capabilities both domestically and internationally, with exports and premiumization expected to drive sustained sales growth. In light of a sluggish domestic auto market, the firm has cut its net profit forecasts for 2026 through 2028 by 22%, 20%, and 21%, respectively, reflecting lower sales projections and higher selling expenses tied to the expansion of direct-sales channels and overseas operations.
Comments