CLSA: Cuts Great Wall Motor (02333) target price to HK$7, maintains "Outperform" rating

CLSA issued a research report stating that Great Wall Motor's (02333) third-quarter net profit fell 41% year-on-year. The bank lowered its net profit forecasts for 2026 to 2028, maintained its "Outperform" rating, and cut its target price to HK$7. Great Wall Motor's domestic sales volume fell about 30% year-on-year in the third quarter, and new model promotions weighed on its domestic business, while exports rose to 55% of sales volume, causing net profit for the period to fall 41% year-on-year. The bank expects Great Wall Motor's fourth-quarter net profit to rebound to RMB3 billion, mainly driven by about RMB2 billion in delayed Russian recycling fee refunds, partly offset by year-end bonuses. Excluding the refunds, fourth-quarter net profit is expected to be about RMB1 billion. The bank lowered Great Wall Motor's revenue forecasts for 2026 to 2028 by 7%, 16% and 23%, and cut its net profit forecasts by 39%, 46% and 52% respectively, and expects net profit for 2026 to 2028 to broadly stabilize at about RMB6.7 billion to RMB6.8 billion.