CMB International released a research report stating that while maintaining Great Wall Motor's (02333) “buy” rating, the target price was raised from HK$13 to HK$14. The company's net profit for the first quarter of this year was 3.2 billion yuan, exceeding investors' original forecasts and strengthening the bank's confidence in its profitability throughout the year.
The bank said that the annual net profit forecast for Changqi will increase by 25% to 9.9 billion yuan, and believes that the company still needs to launch high-sales new energy vehicles in mainstream markets to enhance investors' confidence in its electrification transformation. It also maintained its sales forecast of 1.35 million vehicles this year, up 10% year on year, and the average sales price forecast was raised 3%; as the gross margin for the first quarter exceeded expectations, the bank raised Changqi's annual gross margin forecast by 0.3 percentage points to 18.9%.