Date: 26 September 2024
Broker: UOB Kay Hian (Hong Kong) Limited

1. Company Overview

Great Wall Motors (GWM) (stock code: 2333 HK) is one of China’s largest automobile manufacturers, specializing in SUVs, trucks, and new energy vehicles (NEVs). GWM has increasingly focused on expanding its electric vehicle (EV) offerings to capture a larger share of the rapidly growing EV market.

2. Sales Performance (38th Week of 2024)

• Wey Brand Performance: GWM’s Wey brand has risen to become one of the top 10 best-selling pure-play EV brands in the 38th week of 2024, recording 1,700 units sold.
• Lanshan Model: Of the Wey brand’s total, 1,536 units were from the newly launched Lanshan model, which is equipped with advanced intelligent driving technology.

3. Product Innovation

GWM is focusing on high-end EV models, such as the Lanshan, to drive both sales growth and profitability. The new Lanshan model features CoffeePilot Ultra 3.0, an intelligent driving system that supports all-scenario navigation on autopilot (NOA) without the need for high-precision maps.

4. Financial Forecasts (2024-2026)

UOB Kay Hian forecasts continued growth for GWM over the next few years, driven by the launch of new high-end models:

• 2024 Net Profit: RMB 15.17 billion
• 2025 Net Profit: RMB 18.05 billion
• 2026 Net Profit: RMB 20.63 billion

These profit estimates are based on expected sales volumes of 1.3 million units in 2024, 1.5 million units in 2025, and 1.7 million units in 2026.

5. Investment Outlook

GWM’s focus on launching innovative, high-end EV models positions it well for sales growth and margin expansion. With the successful rollout of the Lanshan model and the potential for new high-end models to optimize the product mix, GWM is set for strong financial performance in the coming years. UOB Kay Hian maintains a BUY rating for GWM with a target price of HK$20.00.