Bank of America Securities has published a research report, adjusting the target price based on the third-quarter performance and sales performance of chinese automobile manufacturers. It points out that china's wholesale sales of electric vehicles in September increased by 42% year-on-year to 1.29 million units, with the penetration rate of electric vehicles reaching a historical high of 45.8%. As of October 7, the Ministry of Commerce has received subsidy applications for 1.27 million units of old-for-new replacements, with electric vehicles accounting for 60%. It is anticipated that the strong momentum of electric vehicle sales can continue into the fourth quarter.

Bank of America has adjusted its forecast for china's passenger vehicle sales in the next two years, raising by 0.1% and lowering by 0.2% to year-on-year growth of 2.2% and 1.5% respectively; At the same time, the forecast for china's electric vehicle sales in the next two years has been raised by 6.2% and 3.7% to a year-on-year growth of 30% and 16%. The bank believes that among the covered automobile manufacturers, great wall motor (02333.HK) and dongfeng (00489.HK) are relatively slow in transitioning to electric vehicles. The target price of great wall motor has been downgraded from 'buy' to 'neutral', and the target price has been raised from 13.7 yuan to 15.4 yuan, with profit forecasts for 2024 to 2026 increased by 11%, 10%, and 10%.

Bank of America has downgraded dongfeng's rating from 'neutral' to 'underperform', with net profit forecasts for 2024 to 2026 lowered by 22%, 25%, and 20%, and the target price decreased from 2.35 yuan to 2 yuan, believing that its current price valuation is too high.