Bank of America Securities released a research report saying, reaffirming the “buy” rating of Great Wall Motor (02333), it is expected that the Group's share of export sales may increase from 26% in 2023 to more than 30% this year, driving a further increase in profits. The target price will increase from HK$13.8 to HK$16.9.
According to the report, Great Wall Motor's strong performance in the first quarter of this year was mainly driven by improved product structure and sales growth in overseas markets. Among them, high-margin Tank brands, pickup truck products, and increased sales contributions in overseas markets all helped drive profit growth.
The bank said that Changqi's profitability in the Chinese market is relatively stable, and the price reduction is smaller than that of its peers. The Group's gross margin level is expected to remain around 20% this year and next two years. Since October of last year, Changqi's stock price has increased by more than 30%. Considering overseas sales and the increase in profit contributions brought by Tank, the bank has raised its profit forecast for this year and next two years by 15% and 13%, respectively.