UBS: Lowering Great Wall Motor's (02333) target price to HK$12 to maintain “buy” rating

The Zhitong Finance App learned that UBS released a research report saying that it lowered the target price of Great Wall Motor (02333) from HK$18 to HK$12, which mainly reflects the uncertainty of the Russian car scrapping tax refund policy, but maintains a “buy” rating. The bank believes that the company's dividend ratio of about 5.5% is attractive at the current stock price level.

UBS said that as the market shifts further to pure electric vehicles, Great Wall Motor's insufficient investment in the electric vehicle sector means that it has probably missed an important growth opportunity, but the bank believes that investors' concerns have been overreflected.

The bank pointed out that according to market consensus, the company's price-earnings ratio is 6.2 times the predicted price-earnings ratio for the next 12 months, which is more than one standard deviation below the historical average, and the valuation is too low for a profitable company with steady cash flow.

UBS lowered the company's net profit forecast for 2026-2028 by 35.3%, 31.3% and 24.8% respectively, of which the forecast is net of RMB 7.845 billion in 2026 to reflect tax uncertainty and weaker-than-expected sales.