Great Wall Motor Co (GWLLF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ji Shi from CMB International Securities maintained a Buy rating on the stock and has a HK$14.00 price target.
Ji Shi has given his Buy rating due to a combination of factors that signal a robust financial outlook for Great Wall Motor Co. The company’s first-quarter net profit for 2024 exceeded expectations, which has bolstered confidence in its profitability for the fiscal year. Great Wall Motor’s net profit margin was not only higher than anticipated, but they also revised their forecasts for the full year’s net profit upwards by 25%. Furthermore, the company demonstrated strong gross profit margins, and their other income was significantly boosted by factors such as excess VAT deductions and tax rebates, which are expected to persist.
Ji Shi’s optimistic stance is further supported by Great Wall Motor’s plans to introduce new battery electric vehicles (BEVs) starting from the next fiscal year, while plug-in hybrid electric vehicles (PHEVs) are expected to be a key focus in the current year. Despite some setbacks in their previous PHEV models, the company aims to launch a competitively priced new PHEV, which could serve as a catalyst for sales growth. The analyst also acknowledges the importance of pricing strategy for the new Wey Lanshan AD version. Taking into account these strategic initiatives and the company’s strong performance, Ji Shi has raised the target price for Great Wall Motor’s stock, while also cautioning investors about potential risks such as lower sales volume and margins, particularly for new energy vehicles.
In another report released on April 24, UBS also maintained a Buy rating on the stock with a HK$14.00 price target.
GWLLF’s price has also changed moderately for the past six months – from $1.355 to $1.500, which is a 10.70% increase.
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Great Wall Motor Co (GWLLF) Company Description:
Great Wall Motor Co., Ltd. engages in the design, development, production, sale, and distribution of automobiles. The firms products include sport utility vehicles, cars, pickups, and car-related automotive. Its brands include HAVAL, WEY, ORA, and GWM PICKUP. The company was founded on August 30, 1984 and is headquartered in Baoding, China.
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