Bank of China International released a report saying that Great Wall Motor's revenue for the first half of the year was 57 billion yuan, up 8.9% year on year, slightly exceeding market expectations. The core driver was a quarterly increase of 13,000 yuan in bicycle revenue, which reached a record high of 181,000 yuan. The sharp year-on-year decline in profits was mainly due to the high base effect, which included two factors: the confirmation of more than 2 billion yuan of Russian scrap tax rebate subsidies in the same period last year; and fluctuations in exchange gains and losses. Furthermore, the confirmation of Russian scrap tax refund subsidies for this year has been delayed and is expected to be recorded in the fourth quarter. The bank lowered its 2026-2027 profit forecast by 3-8% to 7.4 billion yuan/7.7 billion yuan to reflect weak domestic demand and high sales expenses. Since the beginning of the year, the company's H share price has greatly outperformed its peers. The current stock price corresponds to the 2026/2027 forecast price-earnings ratio of 8.3 times/8 times, and the downward trend has a certain margin of safety. However, the bank believes that the growth flexibility of the company's export business is weaker than that of its peers, and that the Guiyuan platform models lack core competitiveness that can drive sales. Both may limit the upward space for stock prices. The bank raised its rating from “sell” to “hold”, and the target price was reduced from HK$9.5 to HK$8, based on an 8-fold price-earnings ratio in 2026.

Bank of China International released a report saying that Great Wall Motor's revenue for the first half of the year was 57 billion yuan, up 8.9% year on year, slightly exceeding market expectations. The core driver was a quarterly increase of 13,000 yuan in bicycle revenue, which reached a record high of 181,000 yuan. The sharp year-on-year decline in profits was mainly due to the high base effect, which included two factors: the confirmation of more than 2 billion yuan of Russian scrap tax rebate subsidies in the same period last year; and fluctuations in exchange gains and losses. Furthermore, the confirmation of Russian scrap tax refund subsidies for this year has been delayed and is expected to be recorded in the fourth quarter. The bank lowered its 2026-2027 profit forecast by 3-8% to 7.4 billion yuan/7.7 billion yuan to reflect weak domestic demand and high sales expenses. Since the beginning of the year, the company's H share price has greatly outperformed its peers. The current stock price corresponds to the 2026/2027 forecast price-earnings ratio of 8.3 times/8 times, and the downward trend has a certain margin of safety. However, the bank believes that the growth flexibility of the company's export business is weaker than that of its peers, and that the Guiyuan platform models lack core competitiveness that can drive sales. Both may limit the upward space for stock prices. The bank raised its rating from “sell” to “hold”, and the target price was reduced from HK$9.5 to HK$8, based on an 8-fold price-earnings ratio in 2026.