Key Takeaways
Jefferies lowered its price target on Great Wall Motor (02333.HK) to HKD22 from HKD25.1, citing a sharp decline in domestic new energy vehicle (NEV) sales that overshadowed robust export growth in the first quarter.
Despite the target reduction, the brokerage reiterated its "Buy" rating, arguing that 2026 will mark the beginning of a "harvest phase" for the company's overseas expansion and platform-driven strategy, fueling future sales and earnings growth.
The target for GWM's H-shares was lowered to HKD22, while the A-share (601633.SH) target was cut to RMB30.4 from RMB34.6. The revision follows the company's latest sales report, which showed first-quarter NEV sales fell 15.9% year-over-year to 53,000 units. This occurred even as the company's total vehicle sales for the period grew 4.8% to 269,000 units.
The reiterated "Buy" rating highlights strong confidence in GWM's international performance, which has become a crucial growth driver. First-quarter export volume surged 43.1% year-over-year to 130,000 units, pushing the overseas sales proportion to 48.3% of the total. Jefferies noted that continued growth in exports of high-margin models like the Tank series should further enhance earnings visibility.
The mixed analyst action could create short-term volatility for GWM's stock as investors weigh the domestic NEV slowdown against the accelerating international business. Market participants will be closely watching if the company's planned overseas NEV model launches can successfully offset the intense competition in the mainland China market.
This article is for informational purposes only and does not constitute investment advice.
