Bocom Intl has raised the profit forecast for Great Wall Motor (02333) for the next two years by 65.5%/77.8%.
According to the research report released by Bocom Intl, the gross profit margin forecast for Great Wall Motor (02333) for the next two years has been revised upwards to 20.2%/20.6% to reflect the increase in sales of the Tank brand and the proportion of overseas sales. The Bank believes that its profit level may continue to improve in the second half of the year due to product structure optimization, so it has raised its profit forecast for Great Wall Motor for the next two years by 65.5%/77.8%. The target price has been raised from HKD 12.25 to HKD 16.3, an increase of 33%, and the rating remains Buy.
Although Great Wall Motor's sales were stable in the first half of the year, its high-priced models grew significantly, and the proportion of export sales also increased significantly, leading to a strong second-quarter profit. Bocom Intl believes that the strong sales momentum of Great Wall Motor's Tank brand will continue to improve its product structure. At the same time, the increase in overseas sales will further enhance the company's profitability.