Jefferies: Lowering the target price of Great Wall Motors (02333) to HK$14 in the first half of the year was more serious than the actual situation

The Zhitong Finance App learned that Jefferies released a research report stating that it will reduce the target price of Great Wall Motor (02333) from HK$22 to HK$14, maintaining a “buy” rating. Cost savings and product structure optimization driven by the “return to the original” of the vehicle platform have largely offset the impact of battery and chip inflation, making gross margins generally stable compared to the same period last year. The bank lowered its net profit forecast for the 2026/2027 fiscal year to 9.4 billion yuan/13.1 billion yuan.

According to the report, Great Wall Motor's financial situation in the first half of 2026 was more serious than the actual situation. The reported net profit was RMB 2.35 billion to RMB 2.6 billion, down 59% to 63% year on year. It was mainly affected by delays in confirming Russian scrapping subsidies of RMB 2.27 billion and exchange rate headwinds of RMB 1.76 billion year on year. Excluding these factors, the bank estimates core net profit of about RMB 6.4 billion to RMB 6.6 billion, which is roughly the same as the net profit of RMB 6.34 billion in the first half of 2025.