BoA Securities: Raise target price of Great Wall Motor (02333) to HK$14.6, reaffirm "neutral" rating.

Bank of America Securities released a research report stating that with the launch of multiple new car models in the second half of the year, Great Wall Motor (02333) is expected to gradually increase its monthly sales from 110,000 units in June to 130,000 units by the end of the third quarter and the beginning of the fourth quarter, further rising to 150,000 units by the end of the fourth quarter. The bank has adjusted its sales forecasts for 2025, 2026, and 2027, lowering them by 4.3%, 0.3%, and raising by 0.3% respectively; profit forecasts have been adjusted by -8%, -4%, and +3%. The target price for H shares has been raised from HK$12.8 to HK$14.6, maintaining a "neutral" rating; while the target price for A shares (601633.SH) has been raised from RMB 18.5 to RMB 21.1, maintaining an "underperform" rating. Bank of America Securities noted that Great Wall Motor's revenue for the first half of the year reached RMB 92.4 billion, a 1% increase year-on-year, with a net profit of RMB 6.3 billion, a 10% decrease year-on-year. This beat market expectations, mainly benefiting from government subsidies and the refund of Russian scrappage taxes. Adjusted net profit for the first half of the year, excluding exceptional items, was RMB 3.6 billion, a 36% decrease year-on-year. Specifically, revenue for the second quarter was RMB 52.3 billion, up 8% year-on-year and 31% quarter-on-quarter; net profit was RMB 4.6 billion, up 19% year-on-year and 1.62 times quarter-on-quarter; adjusted net profit was RMB 2.1 billion, down 42% year-on-year and up 44% quarter-on-quarter. Sales for the second quarter were 313,000 units, up 10% year-on-year and 22% quarter-on-quarter.